DTEK Renewables secures investors' consent to defer redemption of 325 mln euros in Eurobonds by three years

MOSCOW. July 12 (Interfax) - DTEK Renewables B.V., a division of Ukrainian energy group DTEK, has successfully concluded negotiations with holders of its 2024 Eurobonds totalling 325 million euros, who have agreed to defer the redemption of the bonds by three years, until November 2027, Ukrainian media reported, citing the energy company.

DTEK Renewables announced at the beginning of July that it was seeking the consent of holders of its outstanding 8.5% Eurobonds maturing on November 12, 2024 to defer redemption by three years.

The company initially proposed compensation for consent in the amount of $10 for every $1,000 of bond face value, but then doubled the offer. It plans to pay the compensation on July 15.

The terms proposed by the company included the introduction of 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 the reduction of the minimum denomination of the bonds to 1 euro in order to facilitate the payment of PIK interest.

DTEK Renewables also 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 Pokrovska Solar Farm LLC and DTEK Tryfonivska 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 Tiligulska wind farm suretyship, given the critical importance of completing this project.