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 into new Eurobonds. DTEK Energy and the lenders found a mutually beneficial solution, which made it possible to approve the terms of loan restructuring at the meetings of committees of Eurobond holders, creditor banks, according to a statement by the company.
The agreement with creditors, approved by the High Court of Justice of England and Wales, entered into force on May 17, 2021.
Under the terms of the loan restructuring, creditors were offered the opportunity to convert parts of the current debt on DTEK Energy Eurobonds into DTEK Oil and Gas Eurobonds to the amount of $425 million, at a rate of 6.75% per annum and maturity until Dec. 31, 2026. The rest of the debt will be converted into new DTEK Energy Eurobonds to the amount of $1.6 billion. The debt scheduled for restructuring has a maturity date of Dec. 31, 2027.
“Despite the loss of assets in Donbas, the systemic crisis in the Ukrainian electricity market and the economic downturn caused by the COVID-19 pandemic, DTEK Energy has successfully completed the process of restructuring its Eurobonds and its main bank debt in the amount of more than $2 billion. Following a constructive dialogue with our creditors, we have reached an agreement on new parameters for further issuing Eurobonds,” DTEK CEO Maxim Timchenko said. He added, “Our agreement exemplifies the transparent and responsible European approach to investor relations and is also proof that DTEK remains committed to fulfilling its obligations to its partners. We consider this to be fundamental to safeguarding both our commercial reputation and broader confidence in Ukrainian business. I would like to sincerely thank our creditors for their patience and understanding throughout.”
At the same time, under the proposed restructuring terms, in 2021, DTEK Energy will pay a coupon in cash at an interest rate of 1.5% per annum, the rest of the coupon, valued at 3.5% per annum, will be capitalized and added to the debt’s principal amount. The proposed payments for 2021 reflect the reality of the ongoing crisis in the Ukrainian energy sector, the company said.
