By KYIV. Dec 2 (Interfax-Ukraine) – Metinvest Mining and Metallurgical Group has announced a tender to buy back its eurobonds maturing on April 23, 2023 in the amount of up to $70 million at a price of 70% to 80% of the face value.
The justification for the invitation to the tender is active maturity management of the group’s debt to smooth out cash outflows for debt service and reduce liquidity shortages in the first half of 2023, given the highly volatile operating environment for the group and its subsidiaries, Metinvest said on the stock exchange.
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 amid the ongoing war and broader market turmoil, Metinvest said.
The Group said that his eurobonds 2023 with a total nominal amount of $168.583 million are currently circulating on the market, although the initial volume of their issue was $944.15 million.
Competitive and non-competitive buyout bids are accepted until the evening of December 9, and the results of the offer will be announced on December 12 with settlements on December 14.
Metinvest may extend the offer period until the end of the day on December 23. However, in this case, it will buy back the bonds at the price previously set during the tender, minus another 3% of the face value, with the final announcement of the results on December 28 and settlement 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.
