Metinvest $2.3 billion debt restructuring

Bond/note restructuring, Financial restructuring

$ 2.3 billion




  • Metinvest, the largest group of steel and mining companies in Ukraine, restructured its $2.3 billion debt with its creditors and bond holders after around two years of negotiations. 
  • The debt was a combination of three eurobonds - 10.5% 2016 notes, 10.5% 2017 notes, and 8.75% 2018 notes - collectively worth $1.2 billion, and four pre-export finance (PXF) syndicated loans totaling $1.1 billion.
  • Metinvest's outstanding bonds have been cancelled and will be replaced by one senior secured bond maturing December 2021, which is listed on the Irish Stock Exchange and has an interest rate of 2.793% until the end of 2018.
  • The PXF loans have been refinanced with a single $1.1 billion facility due June 2021, extending the term by five years. Metinvest has also negotiated a two year grace period on the scheduled amortisation of the loan's principal.
  • Metinvest's Dutch finance vehicle for the Ukrainian group began the restructuring in 2015 when the group's income fell (because of low commodity prices and war in the east of Ukraine) to levels where it was unable to meet repayments on its debts. 
  • The restructuring was completed using an English law scheme of arrangement.
  • The deal was notable for being the first scheme of arrangement to impose a standstill agreement on creditors, allowing Metinvest time to draft a detailed pre-insolvency restructuring plan without defaulting on payments.
  • Debt restructurings have become common in Ukraine as the economy has struggled in the wake of civil unrest and Russia's annexing Crimea.
  • Rothschild was Metinvest's financial advisor on the restructuring and its information agent was Lucid.

Ben Naylor - Regional editor   


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