Metinvest amends terms and conditions of its notes

14 January 2022

Metinvest (METINV), Ukraine’s largest steel and iron ore producer, on Jan. 13 executed supplemental trust deeds to amend terms and conditions of its notes, according to the holding’s announcement on the same day.

 

The execution happened after the holders of METINV’26 and METINV’27 notes approved the amendments at their Jan. 13 meetings.

 

Recall,  Metinvest had previously achieved the consent of the holders of its three other note tranches (METINV’23, METINV’25, METINV’29) for the amendments.

 

Metinvest will pay the consent fee to relevant noteholders on or before Jan. 20.

 

Regarding the amendments approved by the noteholders, Metinvest is now not limited in its restricted payments if its net leverage ratio (pro forma following the payments) is below 1x, and is limited to paying out the aggregate of 100% of its consolidated net income (CNI) accrued since the beginning of 2017 if its net leverage ratio is between 1x and 2.25x. If its net leverage ratio is between 2.25x and 3x, Metinvest is limited to paying out the aggregate of 50% of its CNI accrued since the beginning of 2017.

 

Previously, Metinvest was unable to make any restricted payments if their aggregate exceeds 50% of its CNI accrued since the beginning of 2017 without any reference to its leverage.

 

Restricted payments include dividends and other distributions, certain investments (including acquisitions of minority interests in other entities), and the purchase or redemption of equity interests and subordinated indebtedness, the announcement said.

 

Dmytro Khoroshun: The amendments enhance Metinvest’s ability to manage its capital structure and execute long-term investment strategies, which is positive.

 

We maintain our neutral view on METINV bonds.

Upcoming Events

Jan 25
AST PW:
2021 trading update
Jan 27
MHP:
2021 trading update
Jan 31
Economy:
Industrial output stats for 2021
All Events →