Metinvest B.V. successfully completes USD 2.3 billion debt restructuring
Baker McKenzie acted as legal counsel to Metinvest B.V., a holding company of a leading Ukrainian and international steel producer and exporter, in connection with the restructuring of USD 2.3 billion of debt under its notes and pre-export finance (PXF) loan facilities. Baker McKenzie assisted Metinvest B.V on this complex transaction alongside with Allen & Overy.
Under the terms of the restructuring, three series of guaranteed notes (due in 2016, 2017 and 2018) were cancelled and delisted and replaced with new listed senior secured notes totaling approximately USD 1.2 billion, due in December 2021. In addition, four PXF syndicated loan facilities have been amended, restated and consolidated into a single loan facility of approximately USD 1.1 billion due in June 2021.
Baker McKenzie's international team was led by Partner Serhiy Chorny from the Kyiv office and Partners Ian Jack and Roy Pearce from the London office. Key input was provided by Hanna Shtepa, Maksym Hlotov, Stepanyda Badovska, Ganna Smyrnova, Anna Boyko and Bogdan Dyakovych in Kyiv; Adam Farlow, Maxim Khrapov, Luka Lightfoot and Chris Hogan in London and Johannesburg; and Robert van Agteren, Valerie van den Berg and Koen Bos in Amsterdam.
Serhiy Chorny, Managing partner of the Kyiv office, commented: "We are honored to provide legal services to Metinvest B.V. and its Group companies for over 10 years, and are proud to have assisted with this complex transaction, unprecedented for the Ukrainian market. Apart from the transaction being very complex from the legal (including documentation) standpoint, it was run in a very challenging political and economic environment. All complications notwithstanding, Metinvest's team invested so much energy and intensive work in this project that it could not be anything but success. We trust that the expertise and dedication of our lawyers contributed to this success.
Metinvest Group is a vertically integrated group of steel and mining companies that manages every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. It comprises steel and mining production facilities located in Ukraine, Europe and the US, as well as a sales network covering all key global markets. For the nine months ended 30 September 2016, the Group reported revenues of USD 4.6 billion and an EBITDA margin of 22%.