Ukraine’s DTEK launches tender offer for PIK toggle notes due 2027

By Marisa Wong

Los Angeles, Oct. 12 – DTEK Finance plc is inviting holders of its $1,671,217,683 outstanding 7%/7˝% senior secured PIK toggle notes due 2027 (ISIN: XS2342930521) to tender their notes for purchase for cash, subject to a maximum acceptance amount.

The purchase price will be determined under an unmodified Dutch auction procedure. The minimum price is $200 per $1,000 principal amount, and the maximum price is $1,000, reflecting discounts to par of 80% and 0%, respectively.

The deadline for submitting discount range repurchase offers is 5 p.m. ET on Oct. 27.

Auction results will be announced on Nov. 3.

Settlement is expected to be on Nov. 10.

Background

With respect to the interest period ending March 31, 2022, the issuer paid a portion of an installment of interest due on the PIK notes. As of June 30, the issuer had an available PIK excess cash amount of $49,401,281.20. As of Sept. 28, the principal amount of the notes representing amounts paid as PIK interest for all periods on and from Jan. 1, 2022 was $16,894,049.

On Sept. 28, the issuer gave a notice of mandatory redemption of the notes paid as PIK interest in respect of all periods on and from Jan. 1, 2022 at par, along with any interest accrued during the period from Sept. 30 to the Oct. 7 PIK redemption date in the principal amount of $16,894,049.

Following this PIK redemption event, the issuer had an available excess cash amount of $32,507,232.20. Under the indenture governing the notes, the issuer is required to offer to repurchase outstanding notes in the amount up to the available excess cash amount.

GLAS Specialist Services Ltd. (+44 20 3597 2940; attn.: trustee & escrow services; TES@GLAS.AGENCY) is the auction agent.

DTEK is a Ukraine-based energy holding company.

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