Interpipe prices USD 300 mln Eurobond at 8.375%

Ukraine’s largest pipe and railway wheel producer Interpipe
(INTHOL) had priced USD 300 mln of new 5-year notes at 8.375% yield to maturity
on May 6, according to a May 7 report by Bloomberg.

Interpipe intends to use 50% of proceeds for general
corporate purposes, including, subject to market conditions, for reducing the
amount of performance securities outstanding. The other 50% of proceeds might
be used for paying a special dividend to shareholders, according to Bloomberg.
Settlement is expected on May 13.

Dmytro Khoroshun: The 257 bps
spread to Ukrainian sovereign at pricing was a bit higher than the 150-225 bps range we expected.

Nevertheless, Interpipe’s overall progress during the
last 18 months with the management of its obligations, from the restructuring
to full repayment of loans and Eurobonds (USD 400 mln in total) to this
issuance of new notes, is impressive. However, the only remnant of the
company’s legacy post-restructuring obligations, the performance securities, are unlikely to be settled early until 2022,
we continue to think.