Ukrainian Railway solicits consents, waivers from 9 7/8% noteholders

By Angela McDaniels

Tacoma, Wash., Nov. 22 – Ukrainian Railway began a consent solicitation for the $500 million 9 7/8% loan participation notes due 2021 issued by Shortline plc, according to a company notice.

The company is soliciting consents

• To extend until Dec. 31, 2017 the period during which the carve-out from the cross-default provision of the loan agreement applies to certain local debt of Ukrainian Railway and a related update of the definition of “designated local indebtedness” to reflect changes in the company’s stock of local debt;

• To provide for a new carve-out from the cross-default provision in relation to Donetsk designated local debt and the additional Donetsk local debt, which will apply for an indefinite period; and

• For a waiver by the trustee and Shortline of any breaches, potential events of default or events of default that may have arisen as a result of occurrence of payment defaults on some local debt of Ukrainian Railway.

A noteholder meeting will be held at 5 a.m. ET on Dec. 7 in London.

The company is offering a consent fee of $5 per $1,000 principal amount of notes to holders who deliver electronic voting instructions in favor of the extraordinary resolution by 5 a.m. ET on Dec. 5.

In order to form a quorum, two or more people holding or representing at least two-thirds of the notes much be present at the meeting. In order for the extraordinary resolution to pass, at least three-quarters of the votes cast must be in its favor.

The information agent is D.F. King Ltd. (+44 20 7920 9700, +852 3953 7230, uz@dfkingltd.com or http://sites.dfkingltd.com/uz). The tabulation agent is Bank of New York Mellon, London Branch (+44 1202 689644 or debtrestructuring@bnymellon.com).

Kyiv-based Ukrainian Railway is the state railway network operator in Ukraine.

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