THIS MESSAGE (MATERIAL) IS CREATED AND (OR) DISTRIBUTED BY A FOREIGN MASS MEDIA PERFORMING THE FUNCTIONS OF A FOREIGN AGENT AND (OR) A RUSSIAN LEGAL ENTITY PERFORMING THE FUNCTIONS OF A FOREIGN AGENT.
VK has announced the likelihood of default on bonds on the London Stock Exchange (LSE) if the majority of their holders demand early redemption.
According to Kommersant, the company placed on the LSE senior unsecured convertible bonds in the amount of $400 million at 1.625% maturing in 2025. On March 3, trading on her GDR was suspended. And according to the terms of the issue, if trading is suspended for ten or more trading days, then bondholders can demand that the company repay them.
“If the company fails to successfully negotiate with bondholders and does not pay the principal amount of the bonds within three days from the date of maturity or does not pay interest within 14 days, then a default will occur,” the company explained.
VK clarified that as of March 9, its cash and cash equivalents were valued at about $190 million. Of this, $140 million is held in foreign currency, including about $80 million outside of Russia. The funds were distributed “to support the working capital of international business” of the company, according to VK.
In December 2021, the company announced a change of co-owners. USM Alisher Usmanova withdrew from the capital of VK by selling the stake she owned through MegaFon to the Sogaz group. In Sogaz, 21.2% belongs to Gazprom. As a result of the transaction, Gazprom-Media received 45% in the company that controls the majority of votes in VK.
Source: Rosbalt
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