21 Mar 2023 10:34

Ukraine's DTEK ups tender offer for 2027 notes to $80 mln

MOSCOW. March 21 (Interfax) - DTEK Holdings Limited has extended the tender offer for Senior Secured PIK Toggle Notes due 2027 issued by DTEK Energy, which is part of Ukraine's DTEK energy holding company, by three days until March 23, Ukrainian media reported, quoting a DTEK Holdings Limited stock exchange filing.

The maximum acceptance amount has also been increased, to $80 million. The decision was made in response to a high amount of tender instructions submitted by investors. There is still no maximum offer price.

The tender results should be announced on March 24 with settlement on April 14.

DTEK Holdings Limited at the beginning of March again offered to buy back notes issued by DTEK Energy maturing in 2027, however, compared to the November offer, the stated maximum amount for the buyback was reduced from $50 million to $30 million, and there was no maximum buyback price, which was 27% of face value in November.

DTEK said at the time that there were currently restrictions on exports and a National Bank of Ukraine moratorium on the purchase of foreign currency for payments on Eurobonds. "In these circumstances, it is critical that the group continue to actively manage maturities and debt repayments to ensure a more stable capital structure that allows it to protect its assets, operations and employees," it said.

It said that in November 2022, the excess cash allowed the Group to repurchase approximately $154 million in the nominal amount of notes. The concluded repurchase process has also demonstrated that there remained significant unfilled supply from the holders of the notes. On December 16, 2022, the group also completed a repurchase of a further $80 million in the aggregate principal amount of notes for $19.8 million, the stated upper limit being $50 million and purchase price being not more than 27% of face value.

Currently notes with an aggregate face value of $1.507 billion remain outstanding, and $79.51 million of them are held by DTEK Holdings Limited.