The international food and agrotechnology company MHP announced on the London Stock Exchange (LSE) the pricing of eurobonds with a total nominal value of $450.0 million, offering a 10.5% coupon and maturing in 2029.
"MHP intends to use the proceeds from the bond sale, together with a prior cash component of $100 million, to finance a tender offer and repurchase the entire aggregate nominal value of eurobonds with a 6.95% coupon maturing in 2026, as well as to cover fees and expenses related to the eurobond offer," the company said in a release.
According to the release, the bonds will be issued by MHP Lux S.A., a Luxembourg-registered subsidiary, and guaranteed by MHP SE and some of its Ukraine-registered subsidiaries, as well as MHP Europe Limited.
LSE data show that MHP shares rose 3.37% on Thursday, reaching $7.98 per share.
Last week, MHP announced the repurchase of its eurobonds worth $550 million maturing in April 2026 and plans for a new eurobond issue maturing in 2029 to finance this repurchase. According to sources, the preliminary proposed placement price for the new issue was 11.0%.
Dealers for the transaction are JP Morgan SE (Frankfurt am Main, Germany) and Dragon Capital (Kyiv).
If successful, this would be the first eurobond issuance by a Ukrainian issuer since Russia’s full-scale aggression in February 2022 (excluding issues related to restructurings).
According to the offer, the repurchase price equals the nominal value plus accrued interest. Two submission deadlines are proposed – an early deadline of 17:00 New York time on January 29 and a final deadline of 23:59 New York time on February 12, 2026. While the settlement dates differ, the repurchase price remains the same.
"The purpose of the Tender Offer is a proactive and prudent resolution of the Group’s bond debt before its April 3, 2026 maturity and the related operational and financial risks, thereby facilitating the smooth transition of bondholders to the new bond offer and expanding their credit exposure," MHP stated.
It is expected that, if successful, any bonds not submitted or properly accepted for purchase will be redeemed around February 18, 2026, according to the financing terms.
MHP eurobonds issued via MHP Lux S.A. maturing April 3 of this year, according to the Frankfurt Stock Exchange, rose 0.12% in price to 95.31% of nominal value on January 15 upon the repurchase announcement, marking a peak since late 2021, while bonds maturing in 2029 rose 0.10% to 86.17%. This Thursday, they increased by 0.38% to 96.97% of nominal and by 0.32% to 86.61% of nominal, respectively.
MHP is the largest poultry producer in Ukraine. It farms 360,000 hectares across 12 regions of Ukraine and is involved in grain, oil, and meat-processing production, exporting to over 80 countries.
