The holders of the Ukrzaliznytsia public railway company’s Loan Participation Notes worth USD 500 million have approved the company’s offer to restructure the notes, Ukrzaliznytsia announced in a statement on the website of the Irish Stock Exchange, the Interfax Ukraine news agency reports.
The proportion of bondholders that accepted Ukrzaliznytsia’s restructuring offer was not specified in the statement.
As reported, Ukrzaliznytsia recently announced that it had conducted negotiations with a group of asset management companies consisting of ICE Canyon LLC, Portland Worldwide Investments Ltd., Promeritum Investment Management LLP, and VR Global Partners, L.P., which have formed an ad-hoc committee, and that it had reached agreement with the ad-hoc committee on the terms of restructuring these Eurobonds.
In particular, the two sides agreed that the coupon on the securities will increase from 9.5% to 9.875% (effective from 21 November 2015) and that its maturity will be extended from 21 May 2018 to 15 September 2021.
At the same time, the agreement entails modification of the interest payment dates to 15 March and 15 September.
In addition, the agreement entails modification of the amortization schedule to provide for repayment as follows: 60% of the outstanding principal amount in 2019 (30% on 15 March 2019 and 30% on 15 September 2019), 20% of the outstanding principal amount in 2020 (10% on 15 March 2020 and 10% on 15 September 2020), and 20% of the outstanding principal amount in 2021 (10% on 15 March 2021 and 10% on 15 September 2021).
