Metinvest extends bond maturity profile
Metinvest B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, has extended the maturity of its eurobonds, taking advantage of favorable market conditions.
"Metinvest, the vertically integrated steel and mining group of companies, has successfully extended the maturity of its outstanding eurobonds, taking advantage of favorable market conditions. While being effectively a debt-neutral liability management exercise, all bonds due in 2021 and 38% of those due in 2023 have been extended to 2027," the company said in a press release.
"The group conducted two simultaneous transactions: capped tender offers to purchase for cash the $118.020 million Senior Notes due 2021 at 7.50%, of which $115.309 million were then outstanding, and the $944.515 million Senior Notes due 2023 at 7.75%, of which $504.515 million were then outstanding, with a concurrent consent solicitation in respect of the 2021 bonds to include an issuer call option; a new eurobond offering of $333 million seven-year maturity bearing a fixed-rate coupon of 7.65% per annum, due on October 1, 2027," the report says.
"The international financial community expressed significant interest in the transactions. The new offering was oversubscribed almost five-fold, as the final book exceeded $1.6 billion, which made it possible to significantly tighten the issue price during the book-building process and price at a final yield of 7.95%. Meanwhile, early tender participation was 90.3% for the 2021 bonds and 46.7% for the 2023 bonds," according to the document.
"I would like to thank the global investor community – those of you who have been with the group for a decade now since the debut eurobond placed in 2010, as well as those who are new to the Metinvest story – for such strong support. This is an excellent testament to the group's investment appeal, credibility and trustworthiness," CEO of Metinvest Yuriy Ryzhenkov said.