DTEK to involve holders of USD 750 mln bond in strategic review talks
6 October 2015
Ukraine’s leading coal and power holding DTEK (DTEKUA) asked the holders of its USD 750 mln notes (maturing in April 2018) to identify themselves, according to its stock exchange release of Oct. 5. The holding seeks “the highest level of response” from the addressed bondholders in communications during the ongoing “strategic review of its capital structure,” the release stated.
The USD 750 mln notes account for 27% of DTEK’s total debt as of end-1H15. DTEK’s other bond, USD 200 mln due in April 2015, was restructured earlier this year, with 20% of the bond having been repaid on its maturity date, repayment of 40% postponed until September 2017 and repayment of the remaining 40% postponed until March 2018.
Alexander Paraschiy: The USD 750 mln bond is a straightforward candidate for restructuring, given its size and the fact that it has not gone through a restructuring process yet. This corresponds to our view that DTEK’s April 2018 bond is riskier than the bond maturing by March 2018. But the riskiness of this bond could be higher than we anticipated – in particular, we heard no information from DTEK on its payment of a USD 29.5 mln coupon on its April 2018 bond, due this Monday.
