March 13, 2018 | Cbonds
|Ukraine’s leading steel holding Metinvest (METINV) reported on March 12 that it will allocate USD 9.8 mln for an early payment on March 18, of which the only disbursement to the noteholders would be the USD 6.5 mln of Pay-If-You-Can (PIYC) interest for the period of Feb. 18 – March 17.|
The Eurobond principal amount outstanding will remain the same as on Feb. 18, USD 1,187.1 mln. The record date for the payment is March 16.
Dmytro Khoroshun: Metinvest made similar PIYC-only early payments in December and January. Paying the PIYC interest on a monthly basis possibly allows the holding to use the one-month LIBOR rate instead of the higher three-month LIBOR rate for settlements with PXF creditors. In any case, we think that whether or not Metinvest makes such monthly payments makes little difference for the noteholders.
We maintain our Speculative Buy recommendation on the Metinvest Eurobond on expectations of a deal (restructuring or refinancing) in the near future. For more details, please refer to our March 1 report on Metinvest.
|Status||Country of risk||Redemption (offer)||Volume||Emission Rating (M/S&P/F)|
|Full company name||Metinvest B.V.|
|Country of risk||Ukraine|
|Country of registration||Netherlands|