Companies

Corporates

Metinvest (METINV)

Issuer Profile

Metinvest is a vertically integrated steel and mining group of companies, with assets in Ukraine, Europe and the United States. It 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. Metinvest is owned by Ukrainian conglomerate System Capital Management (75% share) and Smart Group (25% share). Metinvest benefits from full upstream integration in terms of iron ore (200% self-sufficiency), coking coal (75%) and coke (100%). The group’s U.S.-based United Coal Company (acquired in 2009) secures long-term supplies of high quality coking coal. Metinvest is also the leading producer of iron ore and coke in Ukraine and one of the top 10 iron ore producers globally.

Bond Information

Year20152018
Market Price* ($)98.2591.25
Market YTM*10.95%10.83%
Spread over UST*1,058966
Issue Volume ($m)500750
Coupon Rate (% p.a.)10.25%8.75%
Coupon Frequency--
Maturity Date5/20/20152/14/2018
Ratings: Moody's/S&P/Fitch--

Memorandum Terms

Covenants
Financial Reports S/A – 150 days; A – 180 days
Max. consolidated Debt/Ebitda 3.0
Events of Default:  
Failure to pay 10 days
Cross default $50m
Expiry of licanse, illegality, insolvency etc. 60 days
Judgments $50m

Issuer Financials

Year200920102011E
Net Sales ($m)6,026.009,358.0013,732.00
EBITDA ($m)1,449.002,552.003,517.00
Net Income ($m)334.00437.001,893.00
EBIT Coverage Ratio (x)7.113.833.83
Net Debt/Equity (%)34.91%40.04%40.04%

YTM

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