Interpipe might increase new Eurobond issue to USD 430 mln

Interpipe NTRP, a subsidiary of Ukraine’s largest pipe
producer Interpipe (INPIP), asked its shareholders to approve – at an Aug. 23
EGM – the signing of a surety agreement related to Eurobonds to be issued in
the amount of up to USD 430 mln, according to the EGM’s agenda published by the
company on Aug. 7. Previously, at an April AGM, Interpipe NTRP’s shareholders
allowed the company to sign a surety agreement for up to USD 330 mln in
Eurobonds.

Other than the volume of the issue, the parameters of
the new Eurobonds are the same as before: an interest rate not higher than
10.25%, amortization of USD 150 mln not later than Dec. 31, 2023 and the
remainder not later than Dec. 31, 2024.

Interpipe NTRP’s shareholders are also asked to
approve at their Aug. 23 EGM a surety agreement related to a bank loan from ING
Bank N.V. and other creditors of up to USD 100 mln. At the April AGM, the
maximum amount of this loan was USD 55 mln.

It was previously reported by Reorg Research and Debtwire that, in order to restructure
its debt, Interpipe planned to issue up to USD 310 mln in new Eurobonds.
Interpipe also planned to take on obligations related to two loans of USD 45
mln each, one to domestic creditors and one to international creditors.

Recall, by early April Interpipe reportedly has secured the support
of 100% of its creditors for the restructuring deal and planned to close the
deal by the end of June.

Dmytro Khoroshun: If Interpipe
and its creditors decided to revise the parameters of their deal, for example,
due to the recent increase in Interpipe’s profitability,
they might regret their decision. This is because the commodity markets will
remain volatile, and it might be futile to try to improve the deal again and
again as the situation changes.