MHP bondholders approve changes to 2020 bond covenants

The holders of the 2020 notes of MHP (MHPC LI, MHPSA),
Ukraine’s leading poultry producer, approved proposed amendments to the bond’s
covenants in time for an Oct. 12 deadline, the company reported on Oct. 15.
This became possible after the company increased its consent fee from an
initial 50 bps to 100 bps on Oct. 5. The consent settlement date
was set at Oct. 17.

Alexander
Paraschiy: This is the second time MHP has changed covenants to
its notes due in 2020 and the second time it has had to raise the consent fee
to get the approval done (in February 2016, itincreased
the consent fee to 125 bps from the initial 50 bps.)

Now the conditions of MHP’s
notes due in 2020 (USD 79.4 mln outstanding) have been harmonized with the
notes due in 2024 and 2026 (USD GGG mln outstanding) and the company has been
granted more flexibility in its borrowing and M&A activity. This will allow
the company to close the deal to acquire Slovenian poultry producer Perutnina
Ptuj, which was announced in September, as well as make other
investments. Our view on MHP Eurobonds remains neutral.