Sayenko Kharenko and Avellum Partners advise on DTEK Eurobond Restructuring

Sayenko Kharenko has acted as legal counsel to Deutsche Bank, the dealer manager arranging an exchange offer for the outstanding USD 200 million Eurobonds due 28 April  2015 issued by DTEK on the successful change of the governing law of its US-governed high yield bonds to what the firm describes as an "English law scheme of arrangement.” DTEK was advised by Avellum Partners.

Concurrently with the exchange offer DTEK — Ukraine’s leading energy holding company — applied to the English court to approve the English scheme of arrangement, which would allow the company to acquire the outstanding 2015 notes on the terms of the exchange offer. The exchange offer was also coupled with consent solicitation to amend the existing Eurobonds documentation for the purposes of facilitating the scheme under English law.

DTEK received sufficient consents to amend the Eurobonds documentation and elected to proceed with the scheme of arrangement as envisaged in the tender documentation. Pursuant to the ruling of the English court, the outstanding 2015 notes were successfully restructured on the terms of the exchange offer (including an exchange of the outstanding 2015 notes for 20% cash consideration of their par value and the new notes for 80% of par value). The new notes, due 2018, will bear interest at a rate of 10.375 per annum.

Sayenko Kharenko’s team working on the exchange offer transaction was led by partner Nazar Chernyavsky, and included senior associate Igor Lozenko and associates Taras Shyband, Marta Lozenko.

The Avellum Partners team working on the project was led by partner Glib Bondar, with significant support from associates Oleksandr Polonyk, Artem Shyrkozhukhov, Taras Dmukhovskyy, Orest Franchuk, and Dmytro Tkachuk.

The publication was reprinted with the permission of CEELM. For original publication, please follow: http://ceelegalmatters.com/index.php/over-the-wire/legal-ticker-deals-and-cases-in-cee/item/2620-sayenko-kharenko-and-avellum-partners-advise-on-dtek-eurobond-restructuring