DTEK Energy slightly extends terms of eurobonds redemption, increases remuneration
DTEK Holdings Limited has extended the deadline for accepting applications for the Dutch auction for the redemption of DTEK Energy eurobonds due in 2027 worth $50 million until October 2 inclusive and increased the reward from 0.75% to 1% for the holders' consent to easing a number of conditions on these securities.
DTEK Holdings has committed not to reduce its stated $50 million buyout amount and has provided bondholders with the option to withdraw their consent if their tender offers are not accepted, the company said in a statement on the Irish Stock Exchange.
As reported, the initial deadline for accepting applications was set until the evening of September 26, and DTEK Holdings reserved the right to change the maximum ransom amount.
The company also asked eurobond holders to review covenants to give more room for 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sector, limited by the current bond conditions, as well as the need for a repair campaign and replacement of damaged or outdated equipment, which requires significant capital investment, were noted.
Another factor in the change of covenants DTEK named the replacement of the original issuer of bonds DTEK Finance plc with the 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.
However, on September 21, DTEK Energy announced negotiations with a group of bondholders regarding the terms of the tender offer and the Request for Consent.
The previous time, DTEK announced a similar tender in March 2023, first for an amount of up to $30 million, but then increased it to $80 million. As a result, eurobonds were purchased for this entire amount with a total face value of $181 million at a price of about 41.33% of the face value, bringing profit to the company positive financial result UAH 3.366 billion.
Currently, the total principal amount of outstanding bonds will remain at $1.497 billion, but of this, DTEK Energy owns bonds worth $271.230 million.
Before this, in December last year, the company repurchased eurobonds for $19.8 million (with a stated maximum volume of $50 million) with a maximum repurchase price of 27% of the par value.
