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Metinvest Issues Dual-Currency Bonds & Extends Maturity Profile

Steel News - Published on Tue, 22 Oct 2019

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Metinvest has successfully completed the transaction to extend the maturity of its outstanding Eurobonds. The Group’s debut dual-currency offering, consisting of tranches denominated in US dollars and euros, has helped to effectively extend the maturity of USD 440 million of the USD 944,515,000 Eurobonds due in 2023 by 6.5 years, while the net proceeds from the deal amounted to roughly USD350 million. The deal received strong support from the global investor community and top European financial institutions.

The Group conducted two simultaneously interdependent transactions:
A tender offer for the USD 944,515,000 Eurobonds due in 2023 to purchase for cash up to USD440 million of the paper
A new dual-currency Eurobond offering, including a USD500 million 10-year tranche at 7.75% per annum and a EUR300 million long 5-year tranche at 5.625% per annum

Notably, the dollar-denominated tranche is Metinvest’s longest to date with the lowest yield ever secured by the Group. The debut euro-denominated tranche was issued at the lowest yield ever achieved by any Ukrainian issuers in euros (including the sovereign), and helped Metinvest to diversify the currency mix of its debt portfolio. It also helped to significantly diversify the investor base and further improve investor quality.

Most of the bond investors came from the US, the UK and continental Europe. The investor distribution by region for the dollar-denominated tranche was: US – 55%, Europe – 22%, UK – 21% and CIS – 2%. The euro-denominated tranche’s distribution was: UK – 39%, Europe – 29%, US – 23% and Asia – 9%.

Deutsche Bank, Natixis and UniCredit acted as Joint Bookrunners of the new bond offering and Joint Dealer Managers for the tender offer. On the legal side, Allen & Overy and Avellum advised Metinvest, while Linklaters and Sayenko Kharenko supported the bookrunners.

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Posted By : Rabi Wangkhem on Tue, 22 Oct 2019
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