Metinvest gets tenders for 76% of 10¼% notes so far, extends exchange offer to Nov. 24

By Jennifer Chiou

New York, Nov. 19 – Metinvest BV announced the receipt of tenders for $380,247,000, or 76%, of its $500 million of 10¼% guaranteed notes due May 20, 2015 along with the extension of the exchange offer for the notes.

The tenders were received as of 11:59 p.m. ET on Nov. 18, the prior offer deadline.

According to a company news release, the new deadline is 11:59 p.m. ET on Nov. 24. The exchange offer began on Oct. 21.

The settlement date will now be Nov. 28.

As reported, the offer is conditioned on the receipt of tenders for at least $450 million of the 10¼% notes.

The company is offering cash and 10½% guaranteed notes due Nov. 24, 2017 in exchange for the 10¼% notes.

Earlier this month, the cash consideration was increased to $250 per $1,000 principal amount of notes accepted for exchange from $200, and the exchange ratio was decreased to 75% from 80%. The issue price of the new notes remains par.

In addition, the terms of the new notes were already amended to add restrictions on the ability of the issuer and/or its subsidiaries to make restricted payments during 2015 and 2016 and to specify that the new notes will be redeemed in four equal installment amounts beginning on May 24, 2016.

Holders who tendered by 5 p.m. ET on Oct. 31, the early deadline, will receive an early instruction fee of $10.00 per $1,000 principal amount of notes tendered.

The issuer is seeking to reduce its debt service obligations due in 2015 and achieve a more efficient maturity profile.

Specifically, the company said it is making the exchange offer at this time in order to boost the amount of free cash available in 2015 as well as to preserve working capital to maintain production levels and the minimum level of investment needed to sustain its business.

Deutsche Bank AG, London Branch (+44 20 7545 8011) and ING Bank NV, London Branch (44 20 7767 5107) are the dealer managers. Bank of New York Mellon, London Branch (44 1202 689644 or debtrestructuring@bnymellon.com) is the exchange agent.

Metinvest is an integrated mining and steel business based in Donetsk, Ukraine.

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