Concorde Capital Research: MHP accepts USD 245 mln of tendered notes for purchase

May 17, 2017 - Cbonds

 

Ukraine’s leading poultry producer and farmer MHP (MHPSA, MHPC LI) reported that the holders of USD 245.2 mln of the company’s outstanding USD 750 mln in Eurobonds maturing in 2020 have tendered their notes before the closing of the May 15 expiration deadline. The company is going to accept them for purchase. Following the purchase, the aggregate principal amount of the remaining Eurobonds maturing in 2020 will be USD 504.8 mln.

Igor Zholonkivskyi: Although MHP missed its tender target of USD 350 mln, it still has managed to improve its debt maturity profile and reduce its cost of debt following the issuance of its USD 500 mln Eurobonds maturing in 2024. The missed target, per se, can be also interpreted as a successful vote of confidence for MHP, as the majority of the bondholders decided to forego the opportunity to exit their position prematurily and thus view MHP notes as a safe investment. The company will now have USD 105 mln of extra cash (the difference between the tender target of USD 350 mln and the actual USD 245 mln in notes purchased) which will give it more flexibility with short-term debt refinancing.
Share:
Issuer: Mironovsky Khleboproduct
Outstanding issues:
2 issuesUSD1,250,000,000
Issuer rating:
Fitch RatingsB-/LT Int. Scale (foreign curr.)05/04/2017
Fitch RatingsB/StableLT Int. Scale (local curr.)05/04/2017
Fitch RatingsAA+(ukr)/StableNational Scale (Ukraine)05/04/2017