DTEK asking noteholders to permit sale of some minor assets
DTEK energy holding is soliciting consent of holders of $910 million worth notes due in 2018 to sell some minor assets to cut debt burden of around $436 million.
The company said on the website of the Irish Stock Exchange (ISE) last week, the noteholders are to notify the issuer on their decision before June 29, 2016. A record date of May 18, 2016 has been set in respect of all notes.
The group may complete the potential deleveraging transaction with the prior written consent of noteholders representing in excess of 25% of the aggregate outstanding principal amount of notes.
The group intends to sell OJSC Obukhovskaya Colliery Group, OJSC Don-Anthracite and Sulinantanthracite LLC located in Rostov region (Russia).
The market value of these assets is estimated at $400 million. The holding hopes that the debt would be reduced by $436 million after the transaction.
DTEK would continue guarantee some liabilities that will be transferred after the sale of these assets: the debt of $100 million (guarantees during next nine months) and the debt of $36 million (from 18 to 24 months).
