Ukrainian Railways pays consent fees, extends Rail Capital notes

By Marisa Wong

Los Angeles, Jan. 27 – JSC Ukrainian Railways announced on Friday the effectiveness of the maturity extension of the $594.902 million outstanding 8¼% loan participation notes due 2024 (ISIN: XS1843433472) and $300 million outstanding 7 7/8% loan participation notes due 2026 (ISIN: XS2365120885) issued by Rail Capital Markets plc.

The issuer confirmed that on Jan. 27 the consent payment relating to each series has been made by Ukrainian Railways to Rail Capital. Rail Capital will proceed to make the consent payments to eligible noteholders.

As a result, the maturity extension amendments have become effective, with Jan. 27 as the effective date.

The new maturity date of the 2024 notes is July 9, 2026, and the new maturity date of the 2026 notes is July 15, 2028.

Prior announcements

As previously reported, Ukrainian Railways launched consent solicitations for the two series of notes on Dec. 5. Both notes were issued by, but with limited recourse to, Rail Capital for the purpose of making loans to Ukrainian Railways.

There was a cross condition. The consent solicitations depended on one another to be deemed successful.

The extraordinary resolution with respect to the 2024 notes was passed and became effective as of Dec. 22. The issuer had received consent instructions approving the proposals on behalf of holders of not less than 75% in principal amount of the outstanding 2024 notes.

Before that, holders representing 73.5% of the outstanding 2026 notes had already delivered consent instructions in favor of the extraordinary resolution as of the original consent deadline of noon ET on Dec. 20.

Proposals

Generally, the concurrent consent solicitations were similar.

The consent solicitations aimed to replace the trustee, as the original trustee had informed the company that it would be unable to continue acting in that capacity.

The company also sought to extend the maturity dates.

In addition, Ukrainian Railways sought to defer interest payments for a support period of up to 24 months, starting in January.

Details

Consenting noteholders will receive a consent payment of $5 for each $1,000 note plus the amount of interest that shall accrue thereon.

For both notes, the consent payment deadline will be Jan. 31.

The solicitation agents are Dragon Capital (Cyprus) Ltd. (+357 25 376 300, Oleksandr.fedorov@dragon-capital.com) and J.P. Morgan Securities plc (+44 20 7134 2468, em_europe_lm@jpmorgan.com).

Kroll Issuer Services Ltd. is the tabulation agent (+44 20 7704 0880, ur@is.kroll.com).

The issuer is a Kyiv, Ukraine-based rail company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.