DTEK Energy announces finalization of debt restructuring

Ukraine’s leading coal and power holding DTEK Energy
(DTEKUA) is engaged with its bank lenders on finalizing the restructuring of
its bank debt, according to the company’s Oct. 29 release. DTEK Energy is
completing the documentation related to the remaining unrestructured facility
that envisages, among other things, (i) conversion of part of the debt into
notes issued by DTEK Finance plc maturing on Dec. 31, 2024, and (ii)
restructuring the remaining debt.

As of June 30, DTEK Energy had USD 207 mln of
unrestructured bank debt, of which 100 mln is subject to bond conversion and
USD 107 mln subject to restructuring, according to its 1H19 presentation. Its
total debt as of end-June 2019 was USD 1,973 mln.

Alexander Paraschiy: Upon
completion of the remaining debt restructuring, DTEK Energy will finalize its
debt operation started in 2015. That will trigger rating upgrades and therefore
will become a powerful catalyst for a surge in its bond price.

We remain bullish on DTEKUA bonds.