Metinvest mining and metal group has agreed the restructuring of eurobonds and pre-export finance facilities (PXF) facilities with a committee of creditors, the group has reported on the Irish Stock Exchange (ISE).

The agreement concerns $85.5 million notes due in 2016, $298.6 million notes due in 2017 and $750 million notes due in 2018 and $1.07 billion PXF facilities.

The conditions of the agreement include conversion of all notes into new $1.125 billion notes due on December 31, 2021 and PXF facilities into a united facility that will expire in June 2021. The liabilities will be settled in the form of the amortization mechanism starting from 2019.

Interest rate for 2021 notes is set at 10.875% per annum. The company is obliged to fully pay only 25.7% of accrued interest by late 2018, while the rest of it would be paid if the company has extra cash. Metinvest is obliged to capitalize 60.5% of accrued interest if it is not paid due to the absence of extra cash.

Starting from 2019, Metinvest is obliged to pay all accrued interest rate.

Interest rate for PXF facility is set at LIBOR+4.16%. Minimum LIBOR is set at 1%. By late 2018, the company will pay only 30% of accrued interest rate, while the rest of it will be paid or capitalized depending on free cash. Starting from 2019 Metinvest is obliged to pay all the accrued interest.

The conditions of the agreement envisage the expansion of provision for liabilities, introduction of restrictions for payment of dividends and other payments to shareholders and toughening of credit conditions and conditions for new notes.

The company anticipates that the meeting of noteholders will be held on June 8, 2016. 75% of noteholders are to approve the offer to validate it.