Metinvest to buy USD 116 mln of 2023 notes

Ukraine’s largest steelmaker Metinvest (METINV) will buy
USD 115.9 mln in principal amount of its 2023 notes outstanding, according to
its June 25 regulatory announcement.

The purchase price will be 107.3% of par (plus accrued
interest), and the principal amount of METINV’23 notes outstanding after
Metinvest’s purchase will be USD 195.3 mln, the announcement said, adding that
the settlement date for the tender will be on or about June 29.

Recall, on June 17 Metinvest announced a tender
for its METINV’23 notes, intending to purchase up to USD 150 mln via a modified
Dutch auction with 107.3% of par (plus accrued interest) as the minimum price.

Dmytro Khoroshun: METINV’23
notes continue to look attractive to their holders, which was the reason the
noteholders were willing to offer only about 37% of the outstanding amount of
the notes for Metinvest’s purchase, we think.

METINV’23 notes will likely be excluded from
JPMorgan’s CEMBI Broad and CEMBI Broad Diversified indices because the amount
outstanding will drop below USD 300 mln after the tender is completed.

We maintain our neutral view on METINV bonds.