Brief: Vestel Elektronik Says It Offers Two Restructuring Options For $500 Mln Eurobonds

Vestel Elektronik Sanayi ve Ticaret AS

Wed 06:18

Oct 21 (Reuters) - VESTEL ELEKTRONİK SANAYİ VE TİCARET VESTL.IS:
SAID ON TUESDAY IT HAS LAUNCHED AN EXCHANGE OFFER AND CONSENT SOLICITATION FOR ITS $500 MILLION 9.75% EUROBONDS DUE 2029, OFFERING BONDHOLDERS TWO RESTRUCTURING OPTIONS AS TALKS WITH BANKS OVER A BROADER DEBT RESTRUCTURING CONTINUE
WAS IN TALKS WITH BANKS TO RESTRUCTURE ITS EXISTING DEBT WITH A TWO-YEAR GRACE PERIOD ON PRINCIPAL AND INTEREST PAYMENTS AND A FINAL MATURITY IN 2041
UNDER THE FIRST OPTION, THE BONDS' MATURITY WILL BE EXTENDED FROM 15 MAY 2029 TO 15 MAY 2035, WITH A REDUCED ANNUAL COUPON OF 4% AND ANNUAL PRINCIPAL REPAYMENTS, WITHOUT ANY PRINCIPAL HAIRCUT
THE SECOND OPTION WILL ALLOW HOLDERS TO EXCHANGE THEIR EXISTING BONDS FOR NEW NOTES DUE MAY 2032 AT 55% OF THEIR ORIGINAL PRINCIPAL VALUE, WITH A 6% ANNUAL COUPON AND PRINCIPAL REPAYMENTS
IT WILL APPLY TO TURKEY'S CAPITAL MARKETS BOARD FOR APPROVAL TO ISSUE NEW EUROBONDS DUE 2032 UNDER THE SECOND OPTION, ADDING THAT THE EXCHANGE WOULD NOT INVOLVE NEW BORROWING OR INCREASE ITS OVERALL DEBT LEVEL
        
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