Ukraine's largest chicken producer to buy back part of its debt at 85% of face value
Myronivsky Hliboproduct (MHP), one of Ukraine’s largest agricultural holdings, will buy back almost a third of its Eurobonds maturing in May 2024 at 85 percent of par, according to the company’s statement on the Irish stock exchange Euronext.
Last month, MHP said it was going to refinance USD 500 million worth of Eurobonds due next May by taking out a loan of up to USD 400 million
At the same time, the company offered holders to sell the bonds early, and on 9 October, it announced preliminary results: the offer was accepted by bondholders for a total nominal amount of USD 150.8 million, or approximately 30.2 percent of the outstanding amount.
Until 9 October, the company accepted bids at 85 percent of the face value, and at 75 percent since then. The final results of the tender will be published at the end of October.
Myronivsky Hliboproduct (MHP) is the largest producer of chicken in Ukraine, holding more than 55 percent of the Ukrainian chicken production market, and exports to the European Union. MHP owns Nasha Riaba, Lehko, and Bashchynskyi brands.
Ukrainian businessman Yurii Kosiuk owns 59.7 percent of MHP through WTI Trading Limited. The group's main production facilities are located in Ukraine, and it also has factories in Slovenia, Serbia, Croatia, and Bosnia and Herzegovina.
The group has two more notes in its portfolio, but with a later maturity—USD 550 million bonds 2026 at 6.95 percent and USD 350 million bonds 2029 at 6.25 percent.
In February, Fitch warned that MHP would have to negotiate a refinancing of the 2024 bonds.
"We estimate that the company's available cash balance of USD 300 million as of end-2022 and expected modest free cash flow (FCF) generation in 2023 will not allow MHP to repay the notes. We therefore believe some refinancing will be discussed with its creditors," it said.
