“Kernel” Repurchases all Outstanding Bonds for $500 Million Ahead of Schedule

by Meifan Honcharuk
Tuesday, November 23, 2021

Ukrainian "Kernel Holding" buys back all outstanding bonds maturing in 2022 and with an annual interest rate of 8.75%

It is noted that the bonds will be redeemed at a redemption price equal to 100% of the principal bonds, plus the issuer's premium and accrued and unpaid interest before the settlement date for the bonds.

According to the company's statement on the Warsaw stock exchange, Kernel Holding is exercising its right to repurchase all outstanding bonds for $500 million at an annual interest rate of 8.75% maturing in 2022 on December 20, 2021. The bonds will be redeemed at the principal redemption price of the bonds plus the payment of the entire issuer premium plus accrued and unpaid interest before the settlement date of the claim.

In addition, the payments amount for the right to the early redemption of bonds and accrued but unpaid interest will be paid by Kernel separately.

Kernel Holding is a manufacturer and exporter of sunflower oil, operating in the production, export and domestic sales of sunflower oil, crop production, export of grain crops, provision of services for storage and transshipment of grain at elevators and port terminals.

About Kernel Holding

  • The Kernel is the world's largest producer and exporter of sunflower oil, a leading manufacturer and supplier of agricultural products from the Black sea region to world markets;
  • The company, founded in 1995, accounts for about 8% of the world's sunflower oil production. Kernel Holding supplies its products to over 60 countries of the world;
  • Kernel Holding is one of the largest exporters of grain from the Black sea region. In 2016-17, the company exported 0.35 million tons of barley, 1.53 million tones of wheat and 2.19 million tons of corn;
  • Kernel Holding, through forwarding contracts, sells about 50% of its crop produced by the company's Agribusiness;
  • The largest co-owner of Kernel is the Ukrainian businessman Andriy Verevskyi with a share of 39.16%.

Profit for 2021

Kernel Holding in fiscal 2021 (July 2020 - June 2021) received $513 million in net profit, which is 4.3 times higher than the same indicator for 2020. At the same time, the revenue of Kernel in 2021 of the farm increased by 38% - to $5.65 billion due to high world prices for grain and sunflower oil.

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