Metinvest has completed a deal on the repurchase of $440 million eurobonds with a maturity in 2023 out of a total issue of $944.515 million through the placement of two new issues of eurobonds: $500 million due in 2029 and EUR 300 million due in 2025. The group’s debut two-currency offer, consisting of tranches denominated in U.S. dollars and euros, helped to effectively extend the maturity of $440 million 2023 eurobonds out of the amount of $944.515 million by six and a half years, while the net proceeds from the transaction amounted to approximately $350 million, the company said last week.
According to the Irish Stock Exchange, the new securities (in U.S. dollars with a coupon of 7.75% per annum and in euros with a coupon of 5.625% per annum) were admitted to circulation on October 17.
Metinvest said on the stock exchange that the total applications for the repurchase of eurobonds 2023, which were also issued with a coupon of 7.75%, amounted to $639.886 million.
As reported, the company held meetings with investors in the United States, the United Kingdom and continental Europe from September 18 to 27. The purpose of the offer is proactive management of debt repayment, extension of debt repayment terms and reduction of refinancing risks, Metinvest said.
