Mironivsky Hliboproduct (MHP) agroholding on April 29, 2015, repaid $234 million on its loan participation notes maturing in 2015.
“10.25 percent Senior Notes due 29 April 2015 in amount of $234 million are paid using syndicated loan facility of IFC (International Finance Corporation), a member of World Bank Group, which provided MHP with $200 million ($175 million from IFC and $25 million from ING), and the company’s cash from operations,” MHP announced in a statement published by the London Stock Exchange.
“We are happy to have a long-standing relationship with IFC and ING, which continue to support and strengthen our company. This latest transaction enabled us to continue implementing our strategy, to prove to our stakeholders that MHP is a long-term reliable partner, who always meets its obligations despite challenging time in Ukraine,” MHP Chief Executive Officer Yuriy Kosyuk said.
MHP Executive Director and Chief Financial Officer Viktoria Kapelyushnaya told Interfax-Ukraine that the company doesn’t plan any new note placement in 2015.
“I see no occasion to speak about the placement of notes,” she said. According to her, funds will be raised through bank loans to replenish working capital. What is more, the company plans to receive pre-export financing to ensure the operation of a soybean processing plant, which is to be commissioned in September 2015.
As was reported, MHP S.A. late in 2007 issued loan participation notes worth $250 million at a coupon rate of 10.25 percent. The notes were to mature in 2011.
In April 2010, the holding exchanged 91 percent of the 2011 notes for new, five-year notes, having kept the coupon rate unchanged. In addition, it placed securities to the tune of $330 million.
As a result, the amount of a new, consolidated issue was $584.767 million.
In April 2013, MHP S.A. refinanced its notes at the expense of the issue of seven-year notes worth $750 million with a coupon rate of 8.25 percent per annum.
In total, the company has already bought back 60 percent of its securities, notes worth $234 million remain in circulation.
MHP is the largest producer of poultry in Ukraine. It is also involved in the production of grains, sunflower oil, and other food.
