Ukraine’s MHP extends consent solicitation for 8¼% notes, ups payment

By Wendy Van Sickle

Columbus, Ohio, Oct. 5 – MHP SE is extending its solicitation of consents from holders of a majority of its $79,417,000 of outstanding 8¼% notes due April 2, 2020 until 5 p.m. ET on Oct. 12 and doubling the consent fee, according to a notice.

The consent solicitation, which was announced on Sept. 20, was originally set to expire at 5 p.m. ET on Oct. 4.

The consent fee has been increased to $10 per $1,000 principal amount from $5 per $1,000 of notes.

As of the original expiration date, the company had secured consents from holders representing 24.4% of the outstanding principal amount of the notes and had received confirmation of support from holders representing an additional 24.2% of the notes, amounting to support from holders of a total of 48.6% of the notes.

Holders who have already delivered valid consents need not take any action to receive the newly enlarged consent fee, according to Friday’s notice.

As previously reported, the company is asking for holder approval to “harmonize certain covenants” of the notes with those of its 2017 notes and 2018 notes as follows:

• Modify the notes indenture for the use of trade credit facility debt; and

• Modify the definitions of “IFRS” and “permitted liens,” including consequential amendments.

The proposed amendments would allow the group “to efficiently finance all of its crops and products consistent with its current business model, proceed with select acquisitions in line with the group’s strategy which typically requires incurring debt that is secured by the target companies’ assets or share capital and enable the group to standardize covenant reporting and compliance obligations in line with the 2017 notes and the 2018 notes by modifying the definition of ‘IFRS,’” according to a previous announcement.

Settlement has been rescheduled for Oct. 17.

J.P. Morgan Securities plc (+44 20 7134 2468 or em_europe_lm@jpmorgan.com) is the solicitation agent. D.F. King Ltd. (+44 20 7920 9700, +852 3953 7231, mhp@dfkingltd.com or https://sites.dfkingltd.com/mhp) is the information and tabulation agent.

The issuer is a Kiev, Ukraine-based agriculture-industrial company.

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