Privatbank’s first attempt to restructure Eurobonds fails

Privatbank’s first attempt to restructure Eurobonds fails



14 липня 2015 года
Конкорд Капитал

Ukraine’s leading lender Privatbank (PRBANK) reported that bondholders at a July 13 meeting did not support the offered restructuring terms of the bank’s subordinated notes (USD 150 mln) due in February 2016. Although the holders of USD 200 mln notes due in September 2015 voted in favor of their proposed restructuring terms at a separate meeting, the results won’t take effect as the offering memorandum provided by the bank required a positive result at both meetings.

Privatbank offered restructuring of its 2015 and 2016 notes in late June, with a 2.25-year maturity extension of its 2015 notes and five-year extension of its 2016 paper.

Alexander Paraschiy: The result is of little surprise given that most Ukrainian issuers of Eurobonds made at least one iteration in their attempts to restructure their paper. The bank now may have to improve its offer for the holders of its 2016 notes, but we see little room for improvement. Privatbank seems to be willing to maintain the status of the 2016 bonds as subordinated debt (meaning its term cannot be less than five years), and it cannot offer more than the already proposed 11% coupon rate and 2% consent fee (which is the regulatory ceiling for Ukrainian issuers). The only way to somehow improve the offer is some cash down payment. Such a move, most likely, will have to be approved by the central bank, and it’s very unlikely that the down payment will be significant.

Источник: Конкорд Капитал

Аналитик: Александр Паращий
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