12:54 01.04.2016

Ukrlandfarming seeks capitalization of 77% of interest payment for 2016 on 2018 eurobonds

2 min read
Ukrlandfarming seeks capitalization of 77% of interest payment for 2016 on 2018 eurobonds

Ukraine's largest agro-holding Ukrlandfarming has proposed 77% of its interest payment for 2016 is capitalized as part of an offer to restructure $500 million 10.875% notes due on March 26, 2018.

The offer has been posted on the website of the Irish Stock Exchange (ISE).

The company is soliciting the consent of the noteholders to amend and restructure the semi-annual interest payments of the existing 10.875% coupon due under the notes on March 26, 2016 and September 26, 2016 as follows: the 5.4375% interest payment due on March 26, 2016 and the 5.4375% interest payment due on September 26, 2016 shall be paid 1.25% in cash each and 4.1875% as pay in kind (PIK), payable on the settlement date.

The consent of the noteholders is being sought to sanction and approve the waiver of any event of default that has occurred or may occur and to sanction and approve the removal of DTCL as trustee, and appointment of GLAS as successor trustee.

If the extraordinary resolution sanctioning the proposals is passed, the company will pay, or procure to be paid, on the settlement date, a cash payment of $1.25 for each $1,000 in principal amount of notes to noteholders who delivered (and did not revoke) valid consents on or before the solicitation deadline.

A meeting of noteholders is scheduled for April 21.

Noteholders holding approximately 40% of the principal amount of the outstanding notes have confirmed their intention to support the proposals.

Consent of at least 75% of noteholders is required with 75% of quorum.

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