Metinvest (B2/B/BB-): our view on new Eurobonds’ fair yield

We estimate that the seven-year eurobonds should be placed with a yield of at least 7.8-7.9%, which fits the issuer’s curve.

The news about early redemption had little effect on the bonds’ prices.Total debt of Metinvest is estimated at $3.01 bln, almost unchanged from the beginning of the year, according to the consolidated statements for 1H20.

Short-term debt accounted for nearly $650 mln. Thus, the new deal will help to further extend repayment period, although it already looks quite comfortable.

After Metinvest 21 notes redemption, the company’s funding needs for the next year will almost fully be covered by free cash balance.