PJSC Ukrzaliznytsia will convene a meeting of bondholders on 17 February for talks on restructuring the Eurobonds it issued for USD 500 million at the yield rate of 9.5%, which will mature in 2018. This was announced on the website of the Irish Stock Exchange (ISE), the Interfax Ukraine news agency reports.
The required quorum is two or more bondholders with a combined two-thirds of the Eurobonds. For any changes to take effect, they must be approved by at least three-fourths of the votes.
If there is no quorum on 17 February, another meeting of the bondholders will be scheduled for 3 March 2016.
As reported, Ukrzaliznytsia announced on 9 December 2015 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 an agreement has been reached with the ad-hoc committee on the terms of re-profiling USD 500 million in Loan Participation Notes with a yield rate of 9.5 percent, which mature in 2018, and and the underlying loans.
As a result, the coupon on the securities will increase from 9.5% to 9.875% (effective from 21 November 2015) and its maturity will be extended from 21 May 2018 to 15 September 2021.
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).
The agreement entails modification of the interest payment dates to 15 March and 15 September.
Read more Ukrzaliznytsia's Eurobonds Will Be Restructured Until March 2016
