Holders of Metinvest-18 eurobonds mulling merge of all issues in one
The eurobond holders of Metinvest mining and metallurgical group are mulling the possibility of converting all its eurobond issues into one with an extended maturity, according to Debtwire.
According to the report, Metinvest creditors' committee attracted Blackstone as a financial adviser and Linklaters for legal assistance in the forthcoming negotiations on restructuring eurobonds totaling $1.1 billion, and pre-export financing of $1.1 billion.
According to the source, the negotiations are likely to begin in September and the committee members are predominantly holders of Eurobonds worth $750 million maturing in 2018, while other bonds for $289 million maturing in 2017 and $85 million maturing in 2016 are also in circulation.
"The holders of the most "long" securities supported the idea of converting all Metinvest Eurobonds into a single issue with the extension of their maturity," Debtwire said.
According to analyst of Concorde Capital investment company (Kyiv) Roman Topoliuk, the proposal to merge all the issues in one can hardly find approval among the holders of short-term securities. The expert admits that this could cause a conflict of interest between the holders.
However, Topoliuk expressed confidence that they would achieve a mutually beneficial solution by the end of the year.