Ukrlandfarming restructures USD 200 mln loan
5 April 2016
Ukraine’s leading farming holding Ukrlandfarming (ULF, UKRLAN) successfully restructured its USD 200 mln loan from Sberbank and Deutsche Bank, Interfax-Ukraine reported on April 4, citing the company’s press release. ULF managed to postpone the loan repayment (due this year, as we undertand) by ten years, as well as enjoy an interim interest rate of 2.5% till June 2018 (from the initial LIBOR plus up to 10%), the release said.
The holding is due to repay USD 215 mln in debt in 2016, out of which it will restructure USD 212 mln, according to a ULF liquidity analysis for 2016 presented in its Eurobond consent solicitation memorandum. In the same document, ULF reported it’s currently overdue on a loan repayment of a total amount of USD 170 mln, out of which USD 163 mln is overdue to Sberbank and Deutsche Bank. As of end-September, ULF had USD 379 mln in current portion of long-term debt and USD 68 mln in current debt.
Alexander Paraschiy: The debt restructuring partially decreases the holding’s threat as a going concern for 2016 and 2017. However, this is not the end of the story as the holding will have to agree on restructuring about USD 170 mln in debt due (and overdue) this year. In ULF’s liquidity outlook, no repayment of these loans is scheduled for 2016 or 2017. Anyway, the news looks extremely positive for UKRLAN bonds.
