Ukraine’s MHP gets OK to align 8¼% note terms with 2017, 2018 issues

By Susanna Moon

Chicago, Oct. 15 – Ukraine’s MHP SE said it secured the needed majority of consents to amend its $79,417,000 of outstanding 8¼% notes due April 2, 2020.

The amendments will be made through a supplemental indenture on Oct. 15, which will become effective on the consent settlement date of Oct. 17, according to a notice.

As announced, the consent solicitation was extended until 5 p.m. ET on Oct. 12 from 5 p.m. ET on Oct. 4 and the consent fee was 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, according to a company update on Oct. 5.

The company said on Sept. 20 that it was 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 an announcement.

As of Thursday, the group is in compliance with the covenants and maintains a consolidated leverage ratio below a 3x threshold, the release noted.

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.

© 2015 Prospect News.
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