MHP accepts for purchase tendered 2020 notes for $245.2 million
KYIV. May 16 (Interfax-Ukraine) – Myronivsky Hliboproduct (MHP) agroholding has accepted for purchase $750 million notes due on April 2, 2020 tendered by noteholders for the amount of $245.2 million, the holding has reported on the London Stock Exchange (LSE).
As reported, this amount of notes was tendered during the initial period of the tender – before April 27. Thus, no note was tendered during the second phase.
On or about 16 May 2017, on the terms and subject to the conditions in the tender offer memorandum, the noteholders will be paid the early tender offer consideration.
The aggregate principal amount of notes outstanding following completion of the tender offer is $504.8 million (due on April 2, 2020).
As reported, Myronivsky Hliboproduct on April 18 offered $750 million note holders ahead of schedule to buy back part of the securities for cash for up to $350 million.
According to the holding, the purpose of this proposal is to continue to proactively manage the company's debt and increase its term by refinancing part of notes with new unsecured notes that will be issued by the agricultural holding.
The initial stage of accepting applications for the redemption of notes ended on 03:00 a.m. (New York time) on April 27, 2017. At this stage, the company offered to buy back 2020 notes at a total of $1,037.5 for $1,000 of the nominal value of notes (not including accrued interest).
On April 28, MHP placed seven-year $500 million 7.75% notes due on April 10, 2024.
Myronivsky Hliboproduct is the largest poultry producer in Ukraine. It is also engaged in production of grains, sunflower oil, and meat.