Holders of PrivatBank notes worth $220 mln approve securities restructuring

The holders of PrivatBank's loan participation notes (LPN) worth $150 million and a bank shareholder, who bought the additionally issued notes for $70 million, at a joint meeting on November 11 approved the restructuring of securities.

According to PrivatBank, the number of securities up for voting was 94.46% of the total issuance. The transaction was supported by the owners of 98.26% of the securities, the value of which amounts to 98.85% of the issue. The owner of 1.74% of the securities worth 1.15% of the issue voted against the deal.

As reported, on October 23, 2015, London's Royal Courts of Justice permitted the issuer to hold the meeting on November 11 with the holders of LPN worth $150 million and notes worth $70 million, which were bought by a shareholder in the bank, to discuss the restructuring of the securities.

The note holders were to approve or reject the offer of the bank to convert all the notes into new LPNs that will be issued in the amount of $220 million at 11% per annum (paid twice a year on February 9 and August 9). The bonds will mature on February 9, 2021.

The note holders, apart from the holder of notes worth $70 million, who informed the issuers' agent on their plans to give their consent to the offer no later than November 9, 2015 and block the notes on their accounts before November 6, will receive a bonus of 2% of the face value of the notes in ownership.

If the offer is approved by holders of over 75% of the notes, it will be submitted to the London court for approval. The court-permitted exchange will be mandatory for all LPN holders.

The court hearing is scheduled for November 13, 2015.

The deal could be finalized on November 16 or later.

PrivatBank was founded in 1992. As of July 7, its largest shareholders were Hennadiy Boholiubov and Ihor Kolomoisky with shares of 45.3182% each.

The bank was the largest bank among 127 banks operating in the country on July 1, 2015 by total assets (UAH 240.01 billion), according to the National Bank of Ukraine.