February 9 (SeeNews) - Bulgarian steel wheel manufacturer Balkancar Zarya [BUL:BZR] said on Thursday that it plans to reduce the coupon rate of a 5.5 million euro ($5.93 million) bond to 3.5% for the five semi-annual coupon payments due in the period from March 22, 2023 to March 22, 2025.
After that, the rate should equal the three-month Euribor plus 3% but not lower than 6.25%, the company said in a bourse filing.
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Under the proposed plan, the last coupon payment on the issue should be made on September 22, 2027. The proposals will be voted on by bondholders at a meeting scheduled for March 6.
According to a previous statement, bondholders approved in March 2021 a coupon rate of 3.5% for the period from March 22, 2021 to March 22, 2023 and a rate equal to three-month Euribor plus 3% but no less than 6.25% for the subsequent payments.
The bond was issued in 2007 with an original coupon rate of 7.25%.
($ = 0.9269 euro)