Page 52 - UKRRptJan21

8.5.1​ Fixed income - bond news
DTEK Energy offers to exchange existing debt for 10Y bonds, 6Y Oil&Gas bonds ​Ukraine’s leading coal and power holding DTEK Energy offered in late November to exchange most of its existing debt into $350mn of DTEK Oil&Gas bonds due in 2026 and new DTEK Energy bonds due in 2030, Reorg Research reported. In its note, DTEK Energy stressed on November 27 that it was not able to reach a deal with the ad hoc group of bondholders on such conditions.​ ​Based on the November 27 offer, DTEK Oil&Gas bonds will have a 7% cash coupon and will amortize in four equal annual installments since December 2023. The total debt of DTEK Oil&Gas to DTEK Energy was $487mn as of end-2019.​ ​On top of that, DTEK Energy is offering to exchange the remainder of its debt (including loans) into new DTEK Energy bonds with ultimate maturity in 2030. The new bonds will offer 3.49% of fixed cash interest and up to 3.51% of variable cash interest (payable in case the company’s actual cash flow after debt service exceeds the planned value). The company is going to direct 25% of its planned cash flow after debt servicing towards the repayment of the new bonds at par annually. Besides contractual repayment, the company will convene Dutch auctions to repurchase its bonds, at least once a year.​ ​DTEK Energy estimates that its cash flow before debt servicing will be $74mn in 2020, $92mn in 2021, $222mn in 2022, will peak at $235 in 2024 and then will gradually decline to $109mn in 2030. Its EBITDA is planned at $309mn in 2020, to peak at $478mn in 2024 and will then gradually decline to $207mn by 2030.
Ukraine’s largest pipe and railway wheel producer​ ​Interpipe​ redeemed at par $74.82mn of its 2024 notes ​on December 29, the company reported the same day. After this redemption, the amount outstanding of INTHOL’24 notes
52​ UKRAINE Country Report​ January 2021 ​ ​www.intellinews.com