Metinvest completes debt restructuring process

Ukraine’s leading steel holding Metinvest (METINV) announced on March 22 that its debt restructuring process has been completed. “Based on the agreement reached, three series of guaranteed notes – due in 2016, 2017 and 2018 – have been cancelled and delisted and replaced with newly listed senior secured notes totalling approximately USD 1.2 billion, due in December 2021,” the company announcement said. On top of that, the holding transformed four PXF loans into a single facility of USD 1.1 bln maturing in June 2021.

Andriy Perederey: The holding completed the restructuring when average prices for its steel products have reached USD 467/t, up 47% yoy from USD 317/t in mid-March 2016. The strong prices on its steel and iron ore products enable the holding to generate enough cash flow to service all its debt obligations and deleverage, even taking into account the official loss of control over steel and coal assets in occupied Donbas (about 10% of its revenue and EBITDA). We are keeping our positive view on Metinvest bonds, which, we expect, will start trading soon at about 95% of par.