DTEK to buy back all $80 mln of DTEK Energy's notes in tender at 41% of face value

MOSCOW. March 27 (Interfax) - DTEK Holdings Ltd will buy back all $80 million of senior secured payment-in-kind toggle notes due in 2027 issued by DTEK Energy, which is part of Ukraine's DTEK energy holding, at the result of a tender offer, Ukrainian media reported, quoting a DTEK Holdings Limited stock exchange filing.

The total volume of the buyback is $193,532,850 at face value. Thus, the buyback price is about 41.3% of the face value.

Settlement will take place on or around April 14.

DTEK said that following the tender, the total principal amount of notes outstanding would remain at $1,506,874,000, of which the group itself will hold the $193.533 million repurchased in the tender, in addition to $79.509 million of previously repurchases securities. These notes will be withdrawn from circulation and will not carry voting rights.

DTEK Energy completed restructuring its debt portfolio in May 2021, converting an existing bond issue and the principal of bank debt into more than $2 billion worth of new notes. Under the terms of the restructuring, part of DTEK Energy's current bond debt was converted into DTEK Oil & Gas 6.75% notes totaling $425 million and maturing on December 31, 2026. The remainder was converted into new DTEK Energy 7.0/7.5% notes totaling $1.645 billion maturing on December 31, 2027.

The holding has already repurchased newly issued DTEK Energy bonds on several occasions. 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 Holdings at the end of March has increased the tender offer to $80 million. The decision was made in response to a high amount of tender instructions submitted by investors. There is was no maximum offer price.

DTEK Energy is the largest privately owned generating company in Ukraine, responsible for coal mining and power generation from coal. The company is part of Rinat Akhmetov's DTEK energy holding, which was set up in 2005.