Yandex proposes that bondholders' redemption rights be extended through June 7

MOSCOW. April 29 (Interfax) - Yandex and the advisors to an ad hoc committee of bondholders have reached an agreement to extend the period during which holders may exercise their redemption right for a further 30 days, from May 3, 2022 to June 7, 2022, the company said in a statement.

The rescheduling is subject to bondholders' approval, which could happen next week, Yandex said.

Initially, it was envisaged that bondholders would exercise their redemption rights until May 3, 2022.

The extension is aimed at reaching a "fair and sustainable solution for all parties involved."

On March 4, Yandex put out an update indicating that in the event of a suspension of trading of Yandex's Class A shares on Nasdaq of more than five trading days, bondholders have the right to require Yandex to redeem their notes at par plus accrued interest. The current principal amount outstanding is $1.25 billion.

In the statement, the company warned that it as a whole does not currently have sufficient resources to redeem the bonds in full. In the event that it were prevented from distributing additional funds from Russian subsidiaries to the Dutch parent company, Yandex would not have sufficient resources to redeem a majority of the bonds.

Even if the company was able to satisfy redemption obligations under the bonds in full, if it was not able to secure additional financing, a requirement to redeem a material portion of the bonds would have a material adverse effect on the company's short-term financial position and liquidity and may affect its ability to meet other obligations, Yandex said then.

Yandex placed $1.25 billion in bonds with a 0.75% coupon in February 2020. The coupon on the bonds maturing in March 2025 was set at 0.75%. On March 3, the company made a coupon payment on the bonds. These payments are scheduled semiannually - on March 3 and September 3.