Ukraine's MHP confirms ready for Eurobond payments

MOSCOW. Nov 16 (Interfax) - MHP, Ukraine's biggest poultry producer, which obtained the consent of bond holders and other creditors in the spring to defer interest payments on Eurobonds by 270 days, confirmed it is ready to pay that interest, Ukrainian media said, quoting a report filed by MHP with the London Stock Exchange.

"Following the strong support demonstrated in March 2022 by holders of our Eurobonds and our bankers, the Group expects to pay in full and on time all bond coupons deferred from March-May 2022," the report says.

MHP's free cash flow decreased to $1.186 billion from $1.23 billion during 9M 2022. This was $1.164 billion on September 30, 2021.

Net debt/EBITDA was 2.94x on September 30, 2022, compared with 1.9x at the start of 2022 and 2.09x a year ago. Leverage remains below the 3.0x stipulated by the Eurobond agreement.

As a hedge for currency risks, revenue from the exports of grain, sunflower and soybean oil, sunflower husks and chicken meat, which are denominated in dollars and euros, are "more than sufficient" to cover debt service expenses, MHP said in the report. Export revenue for 9M 2022 amounted to $ 1.11 billion or 59% of total revenue.

MHP on March 21 asked the holders of three issues of Eurobonds worth $1.4 billion in total and creditor banks to allow it to defer interest payments by 270 days. This concerned coupons due in the period from March to May 2022.

The company had not paid the interest due on March 19 on $350 million of 2029 Eurobonds. Payments on $550 million of 2026 bonds were due on April 3 and on $500 million of 2024 bonds on May 10.

MHP posted a net loss of $269 million for 9M 2022, due mainly to FX translation losses of $367 million, compared with net profit of $377 million in 9M 2021. Revenue grew 14% year-on-year in 9M 2022 to $1.88 billion.