Interpipe redeems USD 74.8 mln of 2024 notes

Ukraine’s largest pipe and railway wheel producer
Interpipe (INTHOL) redeemed at par USD 74.82 mln of its 2024 notes on Dec. 29,
the company reported the same day.

After this redemption, the amount outstanding of
INTHOL’24 notes is USD 6.47 mln, according to the release. In this way,
Interpipe has redeemed early USD 302.7 mln of its bond in 2020, or 98% of the
notes outstanding. Recall, the company redeemed USD 98.5 mln in January, USD
97.0 mln in August and USD 32.4 mln in October.

Dmytro Khoroshun: The key question is why has Interpipe not fully redeemed its Eurobond
amid the apparent ability to do so. Our explanation is that the company is
demonstrating to the markets that it will focus on refinancing its performance-based
securities
(which emerged as a result of debt restructuring) in 2021-1H22, while it won’t
use its opportunity (which opens as soon as it repays its bond in full) to pay
dividends.