DEAL: Metinvest’s tumultuous $2.3 billion restructure

Author: Tom Young | Published: 4 Apr 2017

Ukrainian steel producer Metinvest has overcome political instability to close a highly consensual $2.3 billion restructure by way of a UK scheme of arrangement. The process also employed moratorium schemes side by side with contractually agreed standstill arrangements to buy extra time against the volatile backdrop.

Metinvest’s holding company, Metinvest BV, restructured debt both under its notes and also pre-export finance (PXF) loan facilities, closing on March 29.

Under the terms of the restructuring, three series of guaranteed notes (due in 2016, 2017 and 2018) have been cancelled and delisted and replaced with new listed senior secured notes worth around $1.2 billion and due in December 2021. Four PXF syndicated loan facilities have also been amended, restated and consolidated into a single loan facility of approximately $1.1 billion due in June 2021.

"With creditors’ support, we have arrived at a common solution, cured defaults, deferred repayments...