Page 60 - UKRRptSept21

8.5.1 Fixed income - bond news
Ukraine’s largest steelmaker Metinvest on August 9 launched a tender to purchase some of its 2026 notes outstanding, according to its regulatory announcement.
Metinvest is inviting the holders of METINV’26 notes to make their offers to the company to sell these notes. Metinvest’s reason for this deal is to proactively manage its debt maturity profile, as well as to deleverage and reduce the cost of debt, the announcement stated.
Metinvest intends to purchase up to $250mn in principal amount of the notes (the maximum invitation amount), but may purchase more or less than this amount, at its sole and absolute discretion, or not to purchase any notes.
The tender will take place via a modified Dutch auction, with Metinvest’s minimum purchase price amounting to 114% of par. A noteholder has an option to submit a competitive offer (specifying its offer price and the volume it is willing to sell) or a non-competitive offer (specifying only the volume). Metinvest will determine the purchase price, and accept firstly all non-competitive offers, secondly competitive offers with offer prices lower than the purchase price, and thirdly competitive offers with offer price equal to the purchase price. Pro rata allocations will be applied to the volumes at the first and the third acceptance steps. Metinvest will pay the noteholders the interest accrued on their notes tendered in addition to the purchase price.
60 UKRAINE Country Report September 2021 www.intellinews.com