Metinvest pays an average 151% of accrued coupons in November

Ukraine’s largest steelmaking holding Metinvest (METINV) distributed USD 13.99 mln in interest to bondholders in November, the company announced on Dec. 9.

Metinvest paid the regular 30% of interest accrued in November, or USD 2.78 mln, plus an additional amount on a cash sweep basis, according to the terms of the standstill agreement. November’s additional amount became possible after the average unrestricted cash amount on its balance sheet reached USD 196.6 mln, therefore exceeding the threshold of USD 180 mln.

Including the additional interest paid, Metinvest paid an average of 151.3% of coupons on Eurobonds accrued in November. Recall in October, Metinvest paid 105.6% of interest accrued on its Eurobonds. In January-July, it paid only the minimum amount of 30%.

The total coupon paid for the METINV’16 bond was USD 1.04 mln (136% of accrued for the month), the METINV’17 bond was USD 3.58 mln (134% of accrued for the month). and the METINV’18 bond was USD 9.37 mln (161%). That enabled the holding to reduce the amount outstanding of the METINV’16 note by USD 0.276 mln, the METINV’17 note by USD 0.899 mln and the METINV’18 note by USD 3.567 mln.

Andriy Perederiy: Metinvest’s cash payment of coupons was higher than we expected, driven by beneficial steel pricing and stable operating performance in November. We expect about the same level of cash coupon payments in December as well. We reiterate our positive view on Metinvest Eurobonds, anticipating that the completion of their successful long-term restructuring, expected in January, will become a price trigger.