FESCO to redeem $547.5 mln Eurobonds during debt restructuring

MOSCOW, Sep 6 (PRIME) -- Russia’s Far Eastern Shipping Company (FESCO) will redeem U.S. $547.5 million worth of Eurobonds during debt restructuring, the company said in a statement on Wednesday.

The company said that it and an ad hoc group of bondholders representing 47.34% of the outstanding 8.00% senior secured notes due 2018 and 8.75% senior secured notes due 2020 have agreed the key debt restructuring terms and entered into a standstill and lock-up agreement to facilitate restructuring, the company said.

The terms include a $547.5 million one-time payment and is conditional on a successful raising of new equity investment and/or debt financing in a sufficient amount. Noteholders representing at least 75% of the outstanding notes by value and a majority in number must support the restructuring pursuant to a U.K. scheme of arrangement, FESCO said.

In May 2016, FESCO defaulted on a coupon payment on a 655 million euro Eurobond. Later in 2016, the company offered to pay 50% of the body of the Eurobond and ruble-denominated bond, but the holders wanted an 85% payment.

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