OREANDA-NEWS. April 26, 2010. Myronivsky Hliboproduct (MHP) said in a pricing announcement on Friday that it will issue USD 330 mln in Eurobonds due in 2015 at 10.25%, in addition to the USD 240.6 mln that it is issuing as part of its exchange offer for its USD 226.5 mln Eurobonds due in 2011. MHP said the exchange offer is open for acceptance until May 10; last Thursday it said 91% of existing noteholders had already agreed to the swap by the early participation deadline last week. 

Concorde Capital: The issuance of an additional USD 330 mln in senior notes will increase MHP’s total debt to USD 870 mln after the new notes are placed and the existing MHP-11 is swapped. Given the new notes provision of a less stricter 2.5x net debt/EBITDA covenant (vs. total debt/EBITDA of 2.5x for MHP-11 issue), and the company’s plans to cover USD 100 mln in short-term debt by the year-end, its 2010 forecast net debt/EBITDA should remain at the acceptable 2.2x level. At the same time, we highlight that the efficiency, at which the company uses money raised will be tested over 2011-13, as MHP reduces cash to finance CapEx growth, boosting its volume of net debt.