Interpipe agrees to restructure bank debts at 600bps over Libor
Cyprus-based Interpipe Limited, the owner of Ukrainian Interpipe pipe and wheal producer, has agreed with bank lenders on the restructuring of debts at negotiated 600bps over Libor, DebtWire reported on Wednesday.
"The main restructuring terms include Interpipe paying 600bps over Libor on its extended amortizing bank debt and shareholder Victor Pinchuk injecting more than $60 million of fresh equity," reads the report. "The interest rate payable is linked to a debt/LTM EBITDA ratio, which is expected to decrease over the next few years."
According to the report, a few main lenders will formally keep their exposure to the company until 2018, but the actual life of the restructured bank debt will be shorter and vary tranche-by-tranche.
Interpipe Limited and its managing company EastOne do not comment on the report.
According to DebtWire, Interpipe Limited's overall debts amount to about $1 billion.
As was earlier reported, Interpipe Limited, the issuer of the bonds, secured consent from bondholders to restructure $200 million worth of eurobonds at a bondholders' meeting on September 17, 2010. The decision was taken by the required majority of the bondholders.
Among other things, the bondholders approved the prolongation of the bonds' maturity until 2017, an increase in the coupon rate to 10.25% and the rescheduling of previously unpaid interest worth $17.45 million by October 31, 2010.
The bonds, worth $200 million, were placed on the Euro MTF Market Luxembourg Stock Exchange in July 2007. The original maturity was set for August 2, 2010. Their yield was set at 8.75% per annum and an interest yield was to be repaid every six months.
Interpipe estimates its share on the world's seamless pipe market at 4.3%.
Its major beneficiary is Ukrainian businessman Victor Pinchuk.