Concorde Capital Research: Interpipe might increase new Eurobond issue to USD 430 mln

Interpipe NTRP, a subsidiary of Ukraine’s largest pipe producer Interpipe (INPIP), asked its shareholders to approve – at an Aug. 23 EGM – the signing of a surety agreement related to Eurobonds to be issued in the amount of up to USD 430 mln, according to the EGM’s agenda published by the company on Aug. 7. Previously, at an April AGM, Interpipe NTRP’s shareholders allowed the company to sign a surety agreement for up to USD 330 mln in Eurobonds. Other than the volume of the issue, the parameters of the new Eurobonds are the same as before: an interest rate not higher than 10.25%, amortization of USD 150 mln not later than Dec. 31, 2023 and the remainder not later than Dec. 31, 2024. Interpipe NTRP’s shareholders are also asked to approve at their Aug. 23 EGM a surety agreement related to a bank loan from ING Bank N.V. and other creditors of up to USD 100 mln. At the April AGM, the maximum amount of this loan was USD 55 mln. It was previously reported by Reorg Research and Debtwire that, in order to restructure its debt, Interpipe planned to issue up to USD 310 mln in new Eurobonds. Interpipe also planned to take on obligations related to two loans of USD 45 mln each, one to domestic creditors and one to international creditors. Recall, by early April Interpipe reportedly has secured the support of 100% of its creditors for the restructuring deal and planned to close the deal by the end of June. Dmytro Khoroshun: If Interpipe and its creditors decided to revise the parameters of their deal, for example, due to the recent increase in Interpipe’s profitability, they might regret their decision. This is because the commodity markets will remain volatile, and it might be futile to try to improve the deal again and again as the situation changes.

• Status
  redeemed
• Country of risk
  Ukraine
• Redemption (put/call option)
  *** (***)
• Amount
  200,000,000 USD
• М/S&P/F
  — / — / —

• Full name
  Interpipe Limited
• Registration country
  Cyprus
• Industry
  Ferrous metals