Ukravtodor starts consent solicitation for 6¼% amortizing notes

By Mary-Katherine Stinson

Lexington, Ky., July 28 – The State Road Agency of Ukraine (Ukravtodor) launched a consent solicitation for its $700 million 6¼% guaranteed amortizing notes due 2028 (ISIN: XS2357277149, US857329AA47) to pass a Multiple Series Two Limb written resolution, according to a notice Thursday.

The consent solicitation will expire at 5 p.m. ET on Aug. 9.

Results are expected to be announced Aug. 10, which is also the effective date.

Valid consents are required from holders of at least 66 2/3% of the outstanding principal amount of all the Eurobonds, which are subject to a separate consent solicitation, and more than 50% of the securities for the proposal to become effective.

The current proposal is necessitated by the challenges in maintaining and rebuilding the country's road network during the Russian invasion and ongoing war and the infrastructure damage the war has caused.

The proposal provides Ukravtodor with relief from liquidity outflows in connection with debt service obligations under the securities for 24 months, enabling it to focus its available financial resources on necessary efforts to rebuild and maintain the road network in Ukraine.

Specifically, the proposal would defer each amortizing date by 24 months and would also defer the interest payment date by 24 months to Dec. 24, 2024.

Any interest not paid during the deferral period would bear interest at the applicable fixed rate providing that Ukravtodor has the option to partially repay the interest at any time or instead issue additional securities in an amount equal to the remaining deferred interest.

In addition, holders are being asked to waive any breach or default that may occur with the deferral, with Ukraine’s failure to make principal or interest payments or with any suspension of payments on any series of Eurobonds during the deferral period.

Morrow Sodali Ltd. (+44 20 4513 6933, 203 609-4910, +852 2319 4130, Ukravtodor@investor.morrowsodali.com, https://projects.morrowsodali.com/ Ukravtodor) is the information, tabulation and aggregation agent for the solicitation.

The Ukravtodor notes are guaranteed by Ukraine.

A separate consent solicitation dated July 20 and amended July 22 is also being conducted for the outstanding Eurobonds and $3,239,320,000 GDP-linked securities.

Consents to the Eurobond proposal under the consent solicitation are being taken into account to determine whether holders of at least 66 2/3% of the outstanding principal of all Eurobonds and securities, taken together, have consented to the Eurobond proposed modifications. However, no such consent provided by Eurobond holders will be considered unless the Eurobond proposed modifications are effective.

The agency was established in 1990 and merged into a state-owned open stock company (Avtomobilni dorohy Ukrainy) in 2016. The agency governs automobile roads in Ukraine.

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