REG-VK Company VK Company: Comment on USD 400mn Convertible Bonds due 2025

VKAnnouncement

17/03/2022 07:15

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   VK Company (VKCO)
   VK Company: Comment on USD 400mn Convertible Bonds due 2025

   17-March-2022 / 10:00 MSK
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   17 March, 2022         

                                        

                               VK COMPANY LIMITED

                                        

                Comment on USD 400mn Convertible Bonds due 2025

    

   VK Company Limited (LSE,  MOEX: VKCO, hereinafter  referred as "VK",  "the
   Issuer" or "the Company"),  one of the largest  Internet companies in  the
   Russian-speaking Internet market, provides further update on the potential
   impact  of  the  suspension  of  trading  of  Global  Depositary  Receipts
   representing interests in ordinary shares  of the Company (the "GDRs")  on
   its USD 400mn 1.625 per cent  Senior Unsecured Convertible Bonds due  2025
   ("Bonds").

    

   As previously stated in the Company's press release, dated March 15, 2022,
   trading of VK's GDRs on the London Stock Exchange ("LSE") was suspended by
   the LSE on March 3, 2022, and remains suspended.

   Under the terms of the Bonds, a "De-listing Event" occurs if, among  other
   things, trading of  the GDRs on  the LSE  Main Market is  suspended for  a
   period of 10 consecutive dealing days or more. As a result, a  "De-listing
   Event" under the  Bonds has  occurred following  the close  of trading  on
   March 16, 2022 as trading did not resume.

    

   The Company continues to operate as usual and had approximately USD  170mn
   in liquidity  as of  March  14, 2021  to  support ongoing  operations  and
   current financial obligations.  USD 135mn  of this liquidity  was held  in
   foreign currency,  including  around USD  75mn  held in  foreign  currency
   outside  Russia  to   support  working  capital   of  VK's   international
   businesses.  The  restrictions  under  the  Russian  capital  control  and
   protection measures  may affect  the Company's  ability to  transfer  cash
   funds from  the  Company's Russian  subsidiaries  to its  foreign  holding
   company, which is the Issuer of the Bonds.

    

   The Company has commenced work to develop a proposal to the bondholders to
   address the "De-listing Event" and possible alternatives to the put option
   exercise. The  Company will  present the  proposal for  consideration  and
   approval by the  bondholders ahead  of the "Put  Date" which  is the  14th
   calendar day after  the last  day of  the "De-listing  Event Period"  (the
   60-calendar day  period  commencing  on  the later  of  the  date  of  the
   "De-listing Event"  or  the date  on  which a  "De-listing  Event  Notice"
   thereof is given to bondholders), calculated as May 31, 2022.

    

   The Company would also like to  remind that a "Put Exercise Notice",  once
   delivered, shall become irrevocable and the Issuer shall redeem all  Bonds
   the subject of the relevant "Put Exercise Notices" delivered as  aforesaid
   on the "Put Date",  while such bondholders  will not be  able to vote  and
   participate in any potential bond restructuring.

    

   The Company continues  to welcome bondholder  outreach using the  contacts
   below to ensure that  they are included in  all the future discussions  on
   this topic.

    

   For further information please contact:

    

   Investors

   Tatiana Volochkovich
   Phone: +7 495 725 6357 extension: 3434
   E-mail:  1 t.volochkovich@vk.team

    

   Press

   Alina Fedorova
   Mobile: +7 916 238 1297
   E-mail:  2 alina.fedorova@vk.team 

    

   About VK

    

   VK develops the ecosystem helping millions of people with their day-to-day
   needs online.  More than  90% of  the Russian  internet audience  use  the
   ecosystem services.

    

   The ecosystem enables people  to keep in touch  (using social networks  OK
   and VKontakte, messaging apps  and email service),  play video games  (via
   MY.GAMES), get and offer items and  services, browse jobs and hire  talent
   (via Youla and  VK Jobs), order  food and grocery  delivery (via  Delivery
   Club, Samokat  and  Local  Kitchen), master  new  skills  (at  GeekBrains,
   Skillbox and  other  educational services),  buy  and sell  at  AliExpress
   Russia and fulfill other needs.

    

   The VK  ecosystem  features  a  number of  shared  elements  bringing  the
   services together. Users can sign in  to different services with a  single
   VK ID  account, pay  and earn  cash back  with the  VK Pay  platform,  get
   discounts and deals with VK Combo, access their favorite services via  the
   VK Mini Apps platform - and the Marusya voice assistant can help with  any
   task.

    

   The company offers enterprises to employ its dynamic ecosystem to digitize
   their business  processes,  providing a  range  of solutions  from  online
   promotion and  predictive analytics  to corporate  social networks,  cloud
   services and enterprise automation.

    

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   ISIN:          US5603172082
   Category Code: MSCH
   TIDM:          VKCO
   LEI Code:      2138009IXUP41SPL5B50
   Sequence No.:  149624
   EQS News ID:   1304805


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:t.volochkovich@vk.team
   2. mailto:alina.fedorova@vk.team


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