PrivatBank $220 million debt restructuring

Overview:

• Ukraine-based PrivatBank (the Borrower) completed the restructuring of two series of loan participation notes (LPN), totalling $220 million, using an English law scheme of arrangement.
• The deal included $70 million 5.799% LPN due 2021, issued by UK SPV Credit Finance to fund a $70 million loan to the Borrower, and $150 million 5.799 % LPN due 2016, issued by ICBC Standard Bank to fund a $150 million loan to the Borrower.
• With the agreement of the 98.26% of the shareholders, representing 98.85% of the value of the issue, an English law scheme of arrangement, sanctioned by the High Court, cancelled both series of notes and issued a new series of $220 million 11% LPN due 2021 through UK SPV Credit Finance, to fund $150 million and $70 million subordinated loans to the Borrower.
• Commerzbank served as the solicitation agent for the restructuring.

Jon Moore - Journalist