International rating agency Fitch Ratings has changed with the developing to Positive Rating Watch status on long-term Issuer Default ratings (IDR) NAK Naftogaz of Ukraine in foreign and local currency ratings, which are at the level of RD (restricted default).
As stated in the agency report on Wednesday, it also placed under surveillance in the list Rating Watch positive senior unsecured rating of Naftogaz C.
These rating actions followed the receipt of an acknowledgment of Naftogaz that the bondholders at a meeting on Oct. 19, 2009 voted for the proposal to restructure the company, - explains Fitch.
Agency reminds that the key terms of the proposal on the restructuring include the exchange of existing bonds (which is a loan participation) on the new bonds (direct obligations of the issuer) to the extension of five years.
In addition, provision coupon rate 9.5%, government guarantees, the occurrence of cross-default on the debt of Naftogaz and the sovereign debt of Ukraine to the level exceeds $ 25 thousand, equal to the order of execution of an unsecured debt of Naftogaz and the State as well as events of default, including the government's attempts to challenge the state guarantee.
Terms of the new bonds include the additional issue of bonds under this series, and the board of Naftogaz has decided, stating the intention to issue bonds totaling $ 1,650 billion, the report said the rating agency. This amount will be sufficient to refinance eurobonds worth $ 500 million and bank loans of Naftogaz, denominated in U.S. dollars (approximately $ 1.1 billion).
Fitch points out that the expected rating of new bonds is likely to correspond rated guarantor, assuming that the warranty will remain unchanged. Ukraine currently has a rating of B /outlook negative. When assigning ratings to new bonds rating of existing bonds will be withdrawn by Fitch.
Naftogaz Ukraine On September 24 offered the holders of Eurobonds for $ 500 million to exchange them for new securities with a government guarantee and maturing in 2014. State Holding proposes to increase the coupon rate from the current 8.125% to 9.5% per annum.
Investors who have applied for consent to the restructuring by October 8, to exchange 100% of the debt, then as it did in the period from 9 to 15 October will be able to share only 95% of the debt.
for approval to the restructuring required votes of more than 75% of the bonds. According to NAC, with a proposal to restructure the consent of the holders of more than 93% of the bonds.
Naftogaz Ukraine on September 30, the day of redemption of the bonds, paid only the interest thereon totaling approximately $ 20.3 million
parallel
NAC is negotiating to restructure under the same conditions of bilateral external loans from Deutsche Bank, Credit Suisse and Depha Bank. Debt Naftogaz Depha Bank is estimated at about $ 220 million, Credit Suisse International - about $ 550 million, and Deutsche Bank - about $ 395 million
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