21 Nov 2022 16:08

GeoProMining gets investor clearance for alternative payment options on Eurobonds

MOSCOW. Nov 21 (Interfax) - GeoProMining has received clearance for alternative payment options from holders of dollar-denominated Eurobonds maturing in 2024, the Eurobond issuer said.

The company last week proposed that holders of Eurobonds 2024 agree on adjustments to their terms of service. In particular, it proposed allowing direct payments on Eurobonds at the request of their holders, with such payments to be made in an alternative currency at the decision of the issuer. Payments through the main payment agent will be made after the direct payments are made. Furthermore, the company requested an extension of the grace period during which payment can be made without the occurrence of default, from 7 to 30 days.

Finally, to ensure "operational flexibility" for the assets acquired after the placement of Eurobonds, GeoProMining requested permission to withdraw from the calculation of financial indicators for covenants the already purchased JSC Vismut (the Zhelezny Kryazh gold mine in Transbaikal) and Zangezur copper-molybdenum plant (Armenia), as well as potential M&A targets in the future. At the same time, the company stressed that it still intends to adhere to its conservative debt policy.

The vote was held in written form, with the deadline expiring on November 17. On Friday, Eurobond issuer GeoProMining reported that the proposals were approved by holders of about 82% of the total outstanding Eurobonds, whereas at least 75% was required.

GeoProMining placed its debut $300 million 5-year Eurobond in June 2019. It has a coupon rate of 7.75% and the nearest coupon payment date is December 18.

GeoProMining is a mining company with assets in Russia (gold and antimony production) and Armenia (gold, copper and molybdenum production).