Morrow Sodali, the global consulting firm to corporate and sovereign bond issuers, today published a report which provides a detailed account of their involvement in Ukraine’s recent transformational debt deferral.
When the government of Ukraine needed to approach their foreign creditors for breathing space for repayments on billions of dollars in debt, they assembled a multinational team of leading financial and legal professionals to oversee the complex process and ensure all moving parts came together successfully and on time.
With a team of dedicated experts in major financial centers around the world, Morrow Sodali took on the role of Information and Tabulation Agent for Ukraine’s consent solicitation. Using their proprietary real-time reporting system, BondWatch, which was developed by the Global Debt Services Team at Morrow Sodali, they were able to monitor in real-time the instructions they received from bondholders and identify when the requisite consents had been achieved on each series of bonds. This allowed them to oversee the mechanics of Ukraine’s debt reprofiling, and to gather and disseminate data from multiple sources to provide continuous feedback to all parties as crucial deadlines neared.
“It was particularly important for us as the Information and Tabulation Agent to keep actively communicating with bondholders and custodians, and to closely monitor the flow of consents coming in,” commented Damian Watkin, Morrow Sodali’s Managing Director of Global Debt Services. “This enabled the working group to keep the process moving forward, identifying potential vote shortfalls in time to take remedial action well ahead of voting deadlines.’’
Access to BondWatch provided the entire working group involved in the deal with real-time updates around the clock, allowing them to watch the evolution of the transaction and to drill down into details and export data as required.
“It is so important that if one bond, in particular, does not appear to be getting the required majority, the working group is informed so they know where to focus their energy,’’ explained Pia Gowland, Morrow Sodali’s Director of Global Debt Services. “BondWatch made it possible for Morrow Sodali to provide constant and timely feedback to everyone.”
Thanks to the combined efforts of all involved, the intense three-week negotiations concluded successfully, resulting in the extension of maturity dates and interest deferrals on some $US25 billion worth of debt providing much-needed financial relief for Ukraine.
“The successful consent is a testament to investors’ willingness to support Ukraine and mitigate a potential high burden of the instrument for Ukraine’s economy during the post-war growth period,’’ the Ukraine government said in a statement.
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Morrow Sodali is a market leader in bondholder identification and agency services in debt restructurings and liability management transactions. For more information on Morrow Sodali’s Debt Services or to request a demonstration of BondWatch, please visit our website. Click here to view a selection of Morrow Sodali’s debt deals.
ABOUT MORROW SODALI
Morrow Sodali is a global corporate advisory firm that provides clients with comprehensive advice and services relating to corporate governance, ESG, sustainability, proxy solicitation, capital markets intelligence, shareholder and bondholder engagement, M&A, activism and contested situations.
From headquarters in New York and London and offices in global capital markets, Morrow Sodali serves over 1,000 clients in more than 80 countries, including many of the world’s largest multinational corporations. Clients include listed and private companies, mutual fund groups, stock exchanges and membership associations.
For more information about Morrow Sodali, please visit morrowsodali.com.
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