S & P lowered the rating of O1 Properties by Boris Mintz from B to B-. The likelihood of a change in control in the company grew after the default of the parent O1 Group and the exit from its capital of Goldman Sachs, which used the put option, the agency writes. Goldman Sachs sold 4.33% of the shares of O1 Properties to Mints structures. In the event of a change in control, the creditors of O1 Properties may raise a demand for immediate payment of the debt. This provides for the terms of issuance of Eurobonds for $ 350 million with repayment in 2021, as well as for the bulk of the company's secured loans.
It is unclear whether the proposed transaction for the sale of a controlling stake in O1 Properties of Laysa Group will take place, analysts of S & P write, "since other organizations are also interested in gaining control over O1 Properties." What kind of organization is this, the agency does not specify. One of the creditors of O1 Properties, two partners of the company and a person close to its shareholders, told Vedomosti that the company could go to Riverstretch Trading & Investments (RT & I).
This company was hired by the Rossium concern Roman Avdeyev - to work on structuring the deal to return the funds after the Moscow credit bank (IBC), controlled by Rossiyu, transferred the debt to the concern O1 Group in the amount of 25 billion rubles. The pledge for this debt is a controlling stake in O1 Properties, analysts at S & P write. 62.5% were pledged, Moody's said, and a large payment of O1 Group for this debt is due in June. If O1 Group does not fulfill its loan obligations, it may lose control over O1 Properties, Moody's analysts wrote, also noting that the change of shareholder could become a trigger for early repayment of Eurobonds for $ 350 million, which significantly increases the risk of default. The agency also lowered the rating of O1 Properties: from В1 to В3.
"We believe that O1 Group is increasingly difficult to service its debt obligations, including this loan," - write analysts S & P. They also point out that the management of O1 Properties plans to take obligations from O1 Group to repay a loan for $ 176 million, issued under the guarantee of O1 Properties. A liquidity rating of O1 Properties S & P estimates as "less than adequate", since additional payments are likely in favor of the shareholders of O1 Group or the new controlling shareholder, and the position of the company itself in the public debt capital markets is weak. If the debt burden of O1 Properties increases even more (in addition to the loan of $ 175 million, which will be accepted from the balance of O1 Group), this may create additional pressure on the already weak characteristics of the company's creditworthiness, analysts of the agency summarize.
In addition, the trial continues between O1 Group and the sanated bank FC Opening, analysts say S & P, and a small asset O1 Properties remains under arrest. With the suit of FC Otkritie appealed to the Moscow arbitration in November 2017. The bank asked to recognize several transactions between it and the Mints structures void. In particular, FC Otkryt challenged the acquisition of bonds by OOO O1 Group Finance, early termination of loan agreements and repayment of loans by O1 Group entities. In fact, it is a question of replacing on the balance sheet of the bank secured loans granted to O1 structures, unsecured bonds for 30 billion rubles.
At the petition of the plaintiff, the court seized several assets of the O1 Group, among which shares of the parent company O1 Properties and the business center Nevis on the street. Shchepkina. In February and April 2018, these decisions were confirmed by both the appellate and cassation instances. The next hearing on the merits of the claim is scheduled for 28 June. However, in early June, the High Court of England and Wales decided that "FC Otkrytiye" should stop legal proceedings against O1 Group Boris Mints structures in the Moscow Arbitration Court and not start new ones.