Metinvest finalizes exchange offer for its 2015 Eurobonds

Обзор облигаций 02.12.2014 Metinvest (METINV) announced on Dec.1 that it has completed the exchange offer for its Eurobonds maturing in May 2015. About 77% of the holders of the 2015 bonds have agreed to exchange them into a mix of cash (25%) and new bonds (75%) that mature in November 2017. Hence, Metinvest has repaid USD 96.6 mln in cash and has issued new notes for a total nominal value of USD 289.7 mln and a coupon of 10.5%, priced at 100%. As of Dec. 2, the new bond hasn’t been quoted yet. Metinvest 2015 notes with a nominal value of USD 113.7 mln will remain outstanding. Roman Topolyuk: We expect Metinvest’s 2017 bond will start trading at a YTM of 25-26%, or with some positive spread to the company’s 2018 bond. Currently METINV’18 paper is trading at a 24% YTM.