Ukraine's MHP to buy back 30% of 2024 Eurobonds at 85% of face value

MHP Group's offer to buy back Eurobonds maturing on May 10, 2024 at a price of 85% of face value has been accepted by holders of bonds totalling $150.797 million or 30.2% of the outstanding amount ...

Now MHP, Ukraine's largest chicken producer, is waiting for applications to buy back these bonds at 75% of face value, and on October 27 it plans to release the final results of the tender offer to buy back the bonds announced on September 25. The initial amount of the bond issue was $500 million.

Bonds purchased in the tender offer will be cancelled, the company recalled. MHP's offer stipulated that the buyback price would be 85% of face value until October 9 and 75% thereafter.

MHP said earlier that it had reached a fundamental agreement with a number of international financial institutions and development organizations for up to $400 million in credit resources that it intends to use to finance part of the tender offer for the bonds. It was reported later that one of these institutions will be the European Bank for Reconstruction and Development, with a loan of up to $100 million.

The goal of the offer is to solve the problem of the company's debt on the bonds before they mature in the current context of operational and financial risks in Ukraine, MHP said.

Prices for MHP's 7.75% Eurobonds maturing in 2024 rose from 67.96% to 83.37% of face value on the announcement of the buyback offer and continue to trade at around this level to this day, data from the Frankfurt Stock Exchange showed.

MHP earned a net profit of $67 million in the first half of 2023 compared to a loss of $89 million in the same period of 2022. The group's revenue grew by 35% to $1.555 billion.

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