MHP wraps offer for 2024 notes; total unchanged from early deadline

By Mary-Katherine Stinson

Lexington, Ky., Jan. 22 – Ukraine’s MHP SE concluded its cash tender offer for any and all of the $349,203,000 outstanding 7¾% guaranteed notes due May 10, 2024 (ISIN: XS1577965004, US55302TAD72), reporting the total remained unchanged from the early deadline, according to a notice.

As of that early deadline at 5 p.m. ET on Jan. 4, noteholders tendered $138,076,000, or 39.54%, of the notes. This leaves $211,127,000 outstanding after the offer.

All the tendered notes have been accepted for purchase at a consideration of $950 per $1,000 note, inclusive of a $100 early tender premium that would not have been paid to noteholders tendering after the early deadline. Accrued interest will also be paid.

Repurchased notes will be canceled.

The tender offer expired at 11:59 p.m. ET on Jan. 19, and payment is expected for Jan. 23.

As previously reported, the company said the purpose of the tender offer was to proactively and prudently address its debt under the notes in advance of their maturity in the context of the ongoing war in Ukraine and associated operational and financial risks. The company said it could do so by utilizing financing expected to be made available to the group by major international development finance institutions for such purposes and its existing cash resources.

The company conducted a tender offer for the same notes that ended on Nov. 8. Under that offer, noteholders tendered $150,797,000 of the notes.

Following the first tender offer, the company continued in dialogue with its noteholders. As part of those discussions, noteholders holding more than 10% of the current outstanding principal amount expressed interest in tendering their notes. To treat all creditors fairly, the group decided to extend the follow-on tender offer to all noteholders.

The tender consideration in the second offer was higher than the first. The company said this was in line with the market price of the notes substantially appreciating since the first offer.

The dealer manager was J.P. Morgan SE (em_europe_lm@jpmorgan.com).

Kroll Issuer Services Ltd. (+44 20 7704 0880; mhp@is.kroll.com; https://deals.is.kroll.com/mhp) was the tender and information agent.

The issuer is a Kyiv, Ukraine-based agriculture-industrial company.

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