Ukraine's Naftogaz agrees how to restructure 2022 and 2026 bonds (updated)

National Fertilizers

31/05/2023 16:12

(Adds details)
       KYIV, May 31 (Reuters) - Ukraine's Naftogaz Group said
on Wednesday it had reached agreements with investors on how to
restructure its Eurobonds due in 2022 and 2026, moving closer to
ending a months-long default.
    "We moved one step closer to fulfilling our obligations to
investors," the state-owned gas company's chief executive,
Oleksiy Chernyshov, said in a statement. "It is important that
we managed to find the most optimal solutions for both investors
and our company in close dialogue with all owners of Eurobonds."
    Naftogaz presented two separate debt restructuring offers to
holders of its already defaulted 2022 bonds and to 2026
bondholders. It was locked in talks with bondholders for months.
    The main changes included offering cash payments to holders
of its 2022 bonds on all interest accrued so far to be made in
July 2023 and again in January 2024. 
    The company also offered to defer other interest payments
and principal of the $335 million bond until July 2024 and July
2025, and split them into halves.
    A similar approach was proposed to the 2026 bondholders,
splitting the payments into two parts to be paid in November
2027 and November 2028. 
    The holders of the $500 million bonds would also receive a
consent fee equal to 0.5% of the principal amount.
    Chernyshov urged all holders to support the forthcoming
consent solicitation, saying the company hoped to finalise the
process by July 2023.
          

 (Reporting by Olena Harmash, Editing by Timothy Heritage)
 ((Olena.Harmash@thomsonreuters.com;))