25 Jan 2023 15:51

Govt asks NBU to allow Ukrainian Railways to pay $5.7 mln to complete LPN restructuring

MOSCOW. Jan 25 (Interfax) - The Ukrainian government is asking the National Bank of Ukraine to allow Ukrainian Railways to pay a total of $5,738,480 in fees to holders of the company's loan participation notes who consented to restructure the notes, as well as commission for agents and consultants, Ukrainian media said, quoting the government's website.

The payments must be made by the end of January, according to a government instruction.

"The restructuring announced by Ukrainian Railways will allow about $748 million, including $153 million interest and $595 million principal, to be saved in 2023 and 2024 and used to meet the needs of the state economy and members of the public for rail transportation and enable Ukrainian Railways to carry out its functions, as well as to upgrade railway capacity and restore damaged infrastructure according to the national economy's needs," the government's rationale says.

Holders of two issues of loan participation notes issued by Ukrainian Railways accepted a consent solicitation by the operator in December to defer payments on them by two years. These are $594.9 million of LPN maturing in 2024 and $300 million maturing in 2026. Dragon Capital and JP Morgan acted as consultants and agents for the deal. A consent fee of 0.5% of the face value of the notes was payable.

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. Both issues pay semiannual coupons.

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 Ukrainian Railways or capitalized.