Metinvest will make early payment of Eurobonds

Metinvest Holding announced that it is going to pay interest to holders of Eurobonds with maturity until December 31, 2021, $ 6 million 508,901 thousand of non-guaranteed income for the period from August 18 to September 18, 2017.

According to the company's statement on the website of the Irish Stock Exchange, interest income is charged at a rate of 6.5795% per annum and is paid if the company has more than $ 180 million of free funds for this purpose.

The guaranteed interest income provided for on the securities at the rate of 2.793% per annum will not be paid ahead of schedule.

The terms of circulation of Eurobonds also imply the payment of non-guaranteed interest income at a rate of 1.5025% per annum, which, however, in the absence of available funds, is written off. The related income will also not be accrued and capitalized early.

The date for compiling the register of Eurobond holders for interest payment is December 15, 2017.

As reported, Metinvest at the end of May 2016 agreed with the creditors' committee on the restructuring of Eurobonds and PXF financing. The agreement provided for the conversion of all three Eurobond issues into a single issue with maturity until December 31, 2021 and four syndicated credit lines for PXF financing into one credit line.

At the end of March 2017, the company issued a single new issue of Eurobonds in the amount of $ 1 billion 197 million 232.103 thousand and issued a new credit line for PXF financing in the amount of $ 1 billion 108 million 795.509 thousand.

The terms of circulation of Eurobonds assume quarterly accrual of interest income with payment on February 18, May 18, August 18 and November 18. The interest rate is set at 10.875% per annum. At the same time, until January 1, 2019, 25.7% of the accrued interest will be guaranteed. The rest of the interest income will be paid if the company has more than $ 180 million of free cash for this. In the absence of such funds, 60.5% of the total accrued interest will be capitalized, while the balance will be written off. From January 1, 2019, the group intends to pay all accrued interest income.