DTEK Energy agrees with group of Eurobond holders to extend redemption terms another day
MOSCOW. Oct 6 (Interfax) - DTEK Holdings Limited has extended the deadline for accepting applications for the Dutch auction to redeem DTEK Energy Eurobonds due in 2027 totaling $50 million as well as for applications for the consent of holders to soften a number of conditions for these securities by one more day, through October 10 inclusive.
"The amended terms of the proposed amendments to the agreement received the support of a group of bondholders," Ukrainian media reported, citing the company's announcement on the Irish Stock Exchange on Thursday.
The new expected date for the announcement of results is October 11; settlements will take place on October 30.
DTEK Holdings extended the deadline on October 4 for accepting applications for the third time (by five days, through October 9 inclusive). "The Offering party and Issuer intend, at a later date, to publish amendments to the amended and restated tender offer and memorandum of solicitation dated September 25, 2023, reflecting the progress of discussions on the terms of the proposed amendments to the agreement with a group of noteholders," the company said in a stock exchange announcement on Wednesday
Earlier, on September 25, following negotiations with a group of Eurobond holders, DTEK Energy increased remuneration from 0.75% to 1% for their agreement to soften a number of conditions on these securities and pledged not to reduce the stated redemption amount of $50 million, providing an opportunity for bondholders to withdraw their consent if their tender proposals are not accepted.
As reported, the initial deadline for accepting applications was set at the evening of September 26, and DTEK Holdings reserved the right to change the maximum buyback amount. It was then extended five days, and then two additional more days.
The company also asked Eurobond holders to review covenants to give more room for an investment and a renovation campaign. The importance of the development of energy storage systems for the Ukrainian energy market and the desire to invest in this sector, limited by the current bond conditions, as well as the need for a maintenance campaign and for replacement of damaged or outdated equipment, which requires significant capital investment, were all noted.
Another factor in the change of covenants is DTEK's replacement of the original bond issuer DTEK Finance plc with parent DTEK Energy B.V. at the end of November last year, as existing limits may limit its ability to carry out its normal activities.
Currently, the total principal amount of outstanding bonds will remain at $1,496,874,000, but DTEK Energy owns bonds worth $271.230 million of that sum.
The previous DTEK announcement of a similar tender was in March 2023, initially for an amount of up to $30 million, but it then increased to $80 million. As a result, Eurobonds were purchased for the entire amount with a total par value of $181 million at a price of about 41.33% of the par value.
The company repurchased Eurobonds last December for $19.8 million (with a stated maximum volume of $50 million) with a maximum repurchase price of 27% of par value.