Veon updates offer to holders of 2023 Eurobonds, promises to buy back $600 mln

MOSCOW. Dec 12 (Interfax) - Veon has updated its offer to holders of two issues of dollar-denominated Eurobonds maturing in 2023, including a requirement to buy back bonds totalling up to $600 million, the telecom group reported.

Under the changes, which were made after feedback from certain bondholders, Veon Holdings B.V. will undertake to buy back bonds totaling up to $600 million subject to a number of conditions, including compliance by the company with all applicable laws and regulations, including sanctions laws and regulations, the company said.

Another condition is Veon Ltd., together with Veon Amsterdam B.V. and Veon Holdings B.V., having an aggregate cash balance in their accounts in excess of $1 billion (net of the aggregate amount drawn under the company's multicurrency revolving facility, which as of today is $1.055 billion) on the business day immediately preceding the later to occur of May 2, 2023 and the date the amendments to the bond servicing terms become effective.

If these conditions are met, bondholders will be able to tender their bonds for buyback at a purchase price of 101% of the principal amount, together with accrued and unpaid interest.

At the end of November, Veon asked holders of the two bond issues to defer redemption by eight months in order to enable the group to carry out a corporate restructuring. Under the proposal, the bond maturing in February 2023 would be redeemed in October and those maturing in April 2023 would be redeemed in December next year.

For their agreement to the changes, Veon initially offered bondholders a premium of 0.75 basis points, which has now been raised to 200 points.

The extension on the bonds will give Veon time to complete the sale of its Russian subsidiary, Vimpelcom, the group said. If the company receives all the necessary regulatory approves, as well as the consent of bondholders, the changes to the maturity dates will go into effect on January 30, 2023. The group also said that any bondholders subject to sanctions will be excluded from voting on the proposed changes.

Veon now has $529.3 million outstanding on the Eurobonds maturing in February and $700 million on those maturing in April 2023.