14:15 16.06.2015

Investors approve Ferrexpo's 2016 eurobond restructuring

2 min read
Investors approve Ferrexpo's 2016 eurobond restructuring

The holders of the eurobonds of British mining company Ferrexpo Plc with main assets in Ukraine have approve the restructuring of the bonds due on April 7, 2016 and worth $285.669 million via their exchange to new bonds due on April 7, 2019.

According to a company report on the London Stock Exchange (LSE), Ferrexpo Finance Plc had received instructions with respect to 84.53% of the aggregate principal amount of the Existing Notes outstanding, of which 99.42% voted in favor. This is above the requisite 75% majority required to complete the exchange offer.

The exchange offer will remain open for an additional 10 business days until 11:59 p.m. (New York time) on June 30, 2015.

As reported, Ferrexpo in late May announced a new exchange offer and consent solicitation for the outstanding amount of its eurobonds due in 2016 worth $285.669 million to the bond holders who refused to exchange the securities in February 2015.

Ferrexpo proposed that the outstanding amount of its eurobonds is refinanced and replaced by the same notes proposed in February – notes that will mature on April 7, 2019 at the coupon of 10.375% per annum. An amortization schedule is foreseen for them: 50% of their nominal value to be paid on April 7, 2018 and 50% - on April 7, 2019. The cash consideration amount was increased to 35% of the aggregate principal amount of existing notes accepted for exchange (earlier 25%).

The early consent fee shall be $20 per $1,000 principal amount of existing notes for investors who give consent for exchange before June 15, 2015 and $5 per $1,000 principal amount of existing notes for investors who give their consent for exchange before June 30, 2015.

The expected time and date of the meeting of the holders is July 2, 2015. The settlement date is July 6, 2015.

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