By KYIV. Dec 29 (Interfax-Ukraine) – According to the results of the second stage of the tender, the Metinvest Mining and Metallurgical Group will buy back its eurobonds maturing on April 23, 2023 for a nominal amount of another $0.5 million at a price of 77% of the nominal value.
According to the company’s report on Wednesday, taking into account the first stage of the tender, when the redemption price was 80% of the face value, the total nominal amount of the bonds to be redeemed will be $23.625 million, and the volume of securities in circulation will decrease to $144.958 million.
Earlier it was reported that on November 28, Metinvest offered holders of its 2023 eurobonds to buy them for up to $70 million at a price of 70% to 80% of the face value.
Competitive and non-competitive bids for the first stage were accepted until the evening of December 9, and the results of the offer were announced on December 12 with settlements on December 14. At the second stage, Metinvest accepted until December 23 bids for the redemption of bonds at the price previously set during the tender, minus another 3 percentage points from the face value with settlements on December 29.
Metinvest is a vertically integrated mining group of companies. Its main shareholders are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage the company.
At the same time, similar tenders for the repurchase of eurobonds were held by the energy subsidiaries of SCM: DTEK Renewables and DTEK Energy respectively for EUR2.583 million at 30% of the face value with a redemption ceiling of EUR 20 million and a total nominal issue volume of EUR 325 million and for $19.791 million at a price 27% of the face value and below with a buyback ceiling of $50 million with a total nominal issue volume of $1.517 billion.
Metinvest said that the rationale for the invitation to tender is the group’s active maturation management of the group’s debt to smooth out cash outflows for debt service and alleviate the liquidity squeeze in the first half of 2023, given the highly volatile operating environment for the group and its subsidiaries.
The group said that it is now committed to continuing to service its debt, but the ongoing war in Ukraine, coupled with volatile prices for Metinvest’s products, is creating unprecedented business challenges.
"The invitation gives the group’s investors the opportunity to reduce their exposure to Ukraine-related business in the context of the ongoing war and broader market turmoil," Metinvest said.
