DTEK energy announces completion of restructuring over $2 bln debt
DTEK Energy has completed the process of restructuring its loan portfolio, which provides for the conversion of the current issue of Eurobonds and the principal amount of bank debt in the amount of over $2 billion into new Eurobonds, the company said on Monday evening.
"DTEK Energy, despite the loss of assets in Donbas, the systemic crisis in the Ukrainian electricity market and the economic downturn caused by the COVID-19 coronavirus pandemic, has successfully completed the process of restructuring Eurobonds and the main bank debt for a total of more than $2 billion," Director General of DTEK Maksym Tymchenko is quoted as saying in the press release.
Under the terms of the restructuring, part of the current debt on DTEK Energy Eurobonds was converted into DTEK Oil & Gas Eurobonds in the amount of $425 million at a rate of 6.75% per annum and maturity until December 31, 2026.
The rest of the debt was converted into new DTEK Energy Eurobonds with a 7% interest rate and maturity on December 31, 2027. In 2021, DTEK Energy will pay a coupon in cash at an interest rate of 1.5% per annum, the rest of the coupon of 3.5% per annum will be capitalized and added to the principal amount of the debt. The proposed payments for 2021 correspond to the crisis situation in the Ukrainian energy sector, the company noted.
The company also indicated that bondholders who joined the Lock-up Agreement by the end of the day on May 5, will receive a payment in the amount of 2% of the amount of new bonds. "Thus, the loans of DTEK Energy have been transferred to a public financial instrument," the press release says.
According to Tymchenko, the parameters for the issue of new Eurobonds were determined in a constructive, partnership dialogue with creditors. "Our agreement is an example of an open and responsible European approach in relations with investors, and proof that DTEK always fulfills all obligations to its partners. It is a matter of business reputation and trust in Ukrainian business," Tymchenko said, thanking creditors for patience and understanding.