21 Dec 2022 16:52

Ukrzaliznytsia extends deadline for consenting to 2024 bond payments freeze by three days

MOSCOW. Dec 21 (Interfax) - Ukrzaliznytsia, or Ukrainian Railways has extended the deadline for holders of $594.9 million of loan participation notes maturing in 2024 to consent to a two-year deferral of payments by two days until the morning of December 23 in order to try and raise the consent threshold to the necessary 75% of holders, Ukrainian media outlets said, quoting a statement by the issuer.

The issuer said 73.5% of bondholders had consented by the original deadline, which was the evening of December 20. It said the results of the offer would be tallied quickly.

Ukrzaliznytsia on December 5 has asked the holders of $594.9 million of 2024 notes and $300 million of 2026 notes to accept a 24-month freeze on payments.

The maturity date of the 2024 notes would be put back from July 9, 2024 until July 9, 2026 and that of the 2026 notes from July 15, 2026 to July 15, 2028.

The company is offering a consent fee of 0.5% of face value, unlike the Ukrainian government, which has reached agreement with holder to freeze payments on its own notes by two years.

The deferred coupons will continue accruing interest at the respective bond's coupon rate for the duration of the deferral period, at the end of which the deferred interest amounts will either be paid in cash by Ukrzaliznytsia or capitalized.

Ukrzaliznytsia intends to treat holders of both bond issues equally, but reserves the right to waive cross-conditionality at any time before the results are announced.

Ukrzaliznytsia has placed two issues of LPNs for a total of $894.9 million through Rail Capital Markets plc. The first issue for $594.9 million matures in July 2024, and the second for $300 million, in July 2026. Coupon payments are made semi-annually in July and January at fixed rates of 8.25% per annum for the $594.9 million issue and 7.88% per annum for the $300 million issue.

Holders of the $300 million 2024 LPNs have, according to preliminary results, accepted the consent solicitation by the operator to defer payments on them by two years. The final results will take the opinions of noteholders into consideration.