More than 80 pct of Mozambique Ematum bond holders agree to debt swap – Reuters

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More than 80 pct of Mozambique Ematum bond holders agree to debt swap – Reuters

4:38 CAT | 28 Mar 2016

Holders representing 81.7 percent of bonds issued by Mozambique’s state-run tuna-fishing company Ematum have accepted the government’s ‘early exchange’ swap offer, the country said, getting it one step closer to a friendly exchange.

Mozambique has offered to swap an outstanding $697 million of amortising dollar-bonds issued by Ematum and maturing in 2020 with a coupon of 6.305 percent for a new sovereign bullet issue maturing in January 2023, priced at 80 percent and holding a coupon of 10.5 percent, according to exchange terms document.

As a sweetener, those agreeing to the ‘early exchange’ were offered a ratio of 105 percent for their bonds, effectively bringing the coupon to well above 11 percent.

The deadline for the early offer had been extended to March 29, the statement said.

Mozambique had to get 75 percent of investors voting on the exchange – and 75 percent of those voting agreeing – for the exchange to go ahead.

Source: Reuters