Freshfields Bruckhaus Deringer has advised Kernel Holding S.A. on the issuance of its USD 500 million guaranteed notes due 2022, which carry an interest rate of 8.75 percent. Latham & Watkins advised joint lead managers and bookrunners JPMorgan and ING Wholesale Banking London on the issuance.
Freshfields describes Kernel as "a diversified Ukrainian-based agribusiness with a share listing on the Warsaw Stock Exchange. It is a leading exporter of, among other products, sunflower oil and grains."
The notes are expected to be rated B+ by Fitch and B by S&P, two notches and one notch above the Ukrainian sovereign respectively. The transaction is significant due it being both Kernel’s debut bond issuance and the first new corporate bond issuance for a Ukrainian group since 2013, which Freshfields asserts could "potentially re-open the international bond market for Ukrainian issuers."
The multi-jurisdictional Freshfields team was led Partner Sarah Murphy.
Latham & Watkins did not reply to our inquiry.
