Ozon may default on 1.875% convertibles due to deferred coupon

By Marisa Wong

Los Angeles, Aug. 23 – Ozon Holdings plc gave notice of a potential event of default on its $750 million 1.875% senior convertible bonds due 2026 issued by the group’s Cypriot holding company, Ozon Holdings plc, according to a press release Tuesday.

As previously disclosed, the company and an ad hoc group of holders of the bonds and their advisers have entered into negotiations in order to reach an agreement on a consensual restructuring of the bonds. Those negotiations are in the final stage, and the company expects to be in a position to implement a restructuring of the bonds within the current financial year.

Given that outlook, and in the interest of all its stakeholders, the company will be deferring the Aug. 24 coupon on the bonds, the company said in Tuesday’s press release.

According to the terms and conditions of the bonds, failure to make coupon payments constitutes a potential event of default. Upon a lapse of 14 calendar days, i.e., on Sept. 8, non-payment of the Aug. 24 coupon will become an event of default.

The company said it plans to continue to operate as usual and appreciates the continued support of its stakeholders and counterparties in these uncertain times.

Ozon is a Russian e-commerce and internet company.

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