Ukraine's MHP places $450 mln in 2029 Eurobonds under 10.5%, its stocks rise 3.4%

MOSCOW. Jan 22 (Interfax) - MHP SE, the parent company of Ukraine's leading international food and agricultural group MHP, has announced at the London Stock Exchange that it has priced the $450.0 million aggregate principal amount of 10.5% notes due 2029, Ukrainian media reported.

"MHP SE intends to use the proceeds of the Notes, along with an upfront cash component of $100 million, to fund the tender offer and redemption of the entire $550 million outstanding aggregate principal amount of MHP Lux S.A.'s 6.95% Notes due 2026 (the '2026 Notes'), as well as to pay fees and expenses related to the offering of the Notes," media quoted MHP as saying in a press release.

The notes will be issued by its wholly-owned subsidiary MHP Lux S.A. registered in Luxembourg, and guaranteed by MHP SE and some of its subsidiaries in Ukraine, and MHP Europe Limited.

According to the LSE, MHP's stocks rose on Thursday 3.37% to $7.98 per share.

As reported, MHP announced last week that it planned to buy back $550 million in its Eurobonds maturing in April 2026 and to place new Eurobonds due in 2029 to refinance this repurchase. The yield proposed initially for the issue was about 11% per annum, according to sources.

JP Morgan SE (Frankfurt am Main, Germany) and Dragon Capital (Kiev, Ukraine) act as dealer managers.

If MHP succeeds, this will be the first time a Ukrainian issuer has issued Eurobonds since the end of February 2022, excluding issues for restructuring purposes.

According to the offer, the repurchase price is equal to the par plus accrued interest. Two deadlines are proposed: an early tender deadline of 5:00 p.m. New York City time on January 29 and an expiration deadline of 11:59 p.m. New York City time on February 12, 2026. These deadlines differ in settlement times, but the repurchase price remains the same.