DTEK Renewables doubles consent fee to extend duration of 2024 notes for three years
MOSCOW. July 8 (Interfax) - DTEK Renewables B.V., the renewable power division of Ukrainian energy group DTEK, has doubled the consent fee for holders to extend the duration of 325 million euros of 8.5% notes maturing on November 12, 2024 for three years.
Ukrainian media reported, citing an announcement by the issuer of the bonds, DTEK Renewables Finance B.V. on the Irish Stock Exchange that the fee per $1,000 note at face value had risen to $20 from $10.
The other terms are unchanged, including the consent deadline of July 12.
As reported, the company proposed to extend the duration of the bonds until November 12, 2027.
It also proposed to introduce an option for the issuer to elect to pay interest in the form of cash and/or payment-in-kind (PIK) on not more than two occasions for so long as applicable currency control regulations imposed by the National Bank of Ukraine (NBU) continue to restrict the group's ability to pay interest on the bonds, and to reduce the minimum denomination of the bonds to 1 euro in order to facilitate the payment of PIK interest.
DTEK Renewables Finance proposed to add the following new security under the bonds within 30 days of the execution and entry into force of the amended trust deed: a first ranking Ukrainian law governed pledge over all of the issuer's equity interests in DTEK Pokrovskaya Solar Farm LLC and DTEK Trifonovskaya Solar Farm LLC in favor of the security agent acting as pledgee, as well as an English law governed assignment of all of the issuer's rights and interests in and under the receivables in favor of the trustee (for itself and for the secured parties).
At the same time, the company proposed that the following existing security and suretyship under the bonds be terminated: the fixed charge over the interest reserve account and the account bank agreement; and the Tiligulskaya wind farm suretyship.
DTEK Renewables Finance proposed to appoint GLAS Trust Corporate as security agent for the bonds.
The company said the main reason for deferring the repayment of notes was the consequences of the conflict in Ukraine, which resulted in the loss of some assets, as well as major market disruptions and the NBU's moratorium on cross-border payments.
The group's assets shrank from 1.46 billion euros as of December 31, 2021 to 676 million euros as of December 31, 2022 and to 604 million euros as of December 31, 2023. Revenue was 94.2 million euros and net losses 13.8 million euros in 2023.