Sayenko Kharenko and Linklaters have advised Deutsche Bank, ING, Natixis, and UniCredit, the joint bookrunners of Metinvest's USD 1.592 million Eurobond issue. Metinvest was represented by Allen & Overy and Avellum on the issue, while Redcliffe Partners and Clifford Chance advised the coordinating mandated lead arrangers, with Clifford Chance also advising on the bank debt.
The issue of Eurobonds was divided into two tranches: USD 944.5 million bonds due 2023 and USD 647.7 million bonds due 2026. The issue was coupled with the cash tender offer and consent solicitation in relation to the Metinvest existing USD 1.2 billion Eurobonds due 2021 of which USD 117 million remain outstanding following the tender offer.
As part of the refinancing, Linklaters acted for the bookrunners on the issuance of USD 1.592 million of new bonds and a liability management exercise in respect of existing bonds due 2021.
Metinvest Group is a vertically integrated group of steel and mining companies. It has steel and mining production facilities in Ukraine, the EU, and the US, as well as a sales network covering all major global markets.
Last year, Clifford Chance advised the coordinating committee for pre-export finance banks in connection with a USD 2.3 billion debt restructuring for Metinvest, with Redcliffe Partners providing Ukrainian law advice to the committee, and with Baker McKenzie and Allen & Overy advising Metinvest on the restructuring as reported by CEE Legal Matters on April 3, 2017.
According to a Metinvest press release on the subject of its 2018 Eurobond issue, "the transaction was market-driven and had the aim of effectively managing and extending Metinvest Group’s debt maturity profile. It also sought to take advantage of favorable conditions to refinance bonds to decrease total funding costs and provide for a longer-term capital structure, while untying the bonds and PXF facility, lowering refinancing risks. Further, the contractual terms of the bond financing have been aligned with standard market terms for comparably-rated issuers."
Commenting on the deal, Metinvest Group CEO Yuriy Ryzhenkov said: “We are very pleased with the result of the refinancing, which has been the product of dedicated work by our entire team as well as our advisers. Equally, I would like to thank all of our lenders and investors for demonstrating their steadfast belief in Metinvest Group’s story. With this landmark transaction completed, we can focus on growing our business through the implementation of our Technological Strategy to 2030, which we believe will make us even more resilient and competitive.”
According to Sayenko Kharenko, “for Metinvest, it was the largest bond issue with the most favorable parameters, as the new bonds have the lowest coupon and the longest maturity. With the approximately USD 1.6 billion total volume of the new bonds, it is the most sizable Eurobond issuance for a privately-owned Ukrainian corporate.”
Their Sayenko Kharenko team was led by Counsel Igor Lozenko and included Associates Dmytro Vasylyna, Denis Nakonechnyi, Yurii Dmytrenko, and Junior Associate Oles Trachuk, all working under the supervision of Partner Nazar Chernyavsky.
The Linklaters team was led by Capital Markets Partners Cecil Quillen and Richard O'Callaghan and Senior Associate Yaroslav Alekseyev. The team also included Managing Associates Olga Fedosova and Amrita Ahluwalia and Associate Katie Ahern.
The Avellum team was led by Senior Partner Glib Bondar, with support from Counsel Taras Dmukhovskyy, Senior Associate Anna Melnychuk, Associates Tetiana Mykhailenko, Orest Franchuk, Anastasiya Voronova, Oleg Krainskyi, Anna Mykhalova. Tax support was provided by Counsel Vadim Medvedev, working with Associates Vladyslav Aleksandrov and Ihor Monastyrskyi.
The Clifford Chance team included Partners Alistair McGillivray, Paul Deakins, Jelle Hofland, and Ilse van Gasteren, Counsel Adam Fadian, Senior Associate Natalia Veryasova, Associates Loes de Visser and Nicole Mazurek, and Trainee Marco Wong.
Allen & Overy did not reply to our inquiries on the matter.
Editor's Note: After the article was published, Redcliffe Partners announced that its team was led by Managing Partner Olexiy Soshenko, supported by Associate Olesia Mykhailenko and Junior Associate Eduard Olentsevych.