DTEK offers extension of debt on credits, notes until 2023 with no 'haircut'
The largest Ukrainian private energy holding DTEK has proposed that creditors and noteholders give their consent to extend the maturity date for the debt until late 2023 with no "haircut" of principal indebtedness, DTEK has said in a letter to its creditors.
Other proposals include some contractual amortization schedule including a sizeable balloon repayment at maturity and excess cash-flow sweep for accelerated repayment of the group’s indebtedness.
DTEK also proposed a reduced cash interest margin to be applied to the notes and the bank facilities until a majority of the restructured debt has been repaid, at which point the margin will revert back to the contractual weighted average pre-restructuring margin.
The company proposed, in compensation for the above reduced interest margin, the issuance of contingent value rights to creditors enabling them to receive economic upsides in the form of incremental cash payments if certain cash-flow targets are met.
DTEK offered terms of restrictions on dividends until repayment of a majority of the group’s outstanding indebtedness under the new post-restructuring notes and the new post-restructuring bank facilities and an annual cap thereafter, as well as restrictions on additional indebtedness, security and other encumbrances and disposals.
