DTEK Holdings Limited has extended the deadline for accepting applications for the Dutch auction for the redemption of DTEK Energy eurobonds due in 2027 in the amount of $50 million and applications for the consent of holders to relax a number of conditions on these securities for another two days – up October 4 inclusive.
The company’s announcement was published on the Irish Stock Exchange on Thursday.
Earlier, on September 25, following negotiations with a group of eurobond holders, DTEK Energy increased the remuneration from 0.75% to 1% for their agreement to soften a number of conditions on these securities and pledged not to reduce the stated redemption amount of $50 million, providing an opportunity for bond holders to withdraw their consent if their tender proposals are not accepted.
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 redemption mount.
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sector, limited by the current bond conditions, as well as the need for a repair campaign and replacement of damaged or outdated equipment, which requires significant capital investment, were noted.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 restrictions may limit its ability to carry out its normal activities.