Ukraine’s Kondor: over 85% of noteholders consent to resolve default

By Mary-Katherine Stinson

Lexington, Ky., July 28 – NJSC Naftogaz of Ukraine and subsidiary Kondor Finance plc received the necessary consents in the consent solicitation covering two series of notes, according to a notice.

On July 13, Kondor Finance, at the request of the borrower NJSC Naftogaz of Ukraine, launched the consent solicitation for noteholders of its $335 million 7 3/8% loan participation notes due 2022 (ISIN: XS2027393938) and $500 million 7 5/8% loan participation notes due 2026 (ISINs: XS2077601610, US50050MAB19) to approve certain amendments and waivers.

The purpose of the consent solicitation was to resolve the default on the notes.

At separate July 28 meetings, a quorum was achieved and the proposals were approved in both cases. The quorum present represented 87.72% of the aggregate principal amount of the outstanding 2022 notes, and 100% of the votes cast were cast in favor of the proposals. The quorum present represented 91.33% of the aggregate principal amount of the outstanding 2026 notes, and 99.72% of the votes cast were cast in favor of the proposals.

“The outstanding success of this consent solicitation, which was supported by over 85% of the holders, will allow Naftogaz to normalize its situation vis a vis capital markets and engage more deeply with international financial institutions and other market professionals who were not able to support until now because of the default situation we are now exiting,” Naftogaz chief executive officer M. Oleksiy Chernyshov said in the notice.

“Naftogaz remains deeply committed to service its debt and implement its corporate governance reforms and investment plans despite extremely challenging circumstances.”

The proposals will now be implemented, including satisfaction of the outstanding consent conditions, before the long-stop date of Sept. 30.

Kondor will release a further announcement once the proposals have been executed, confirming the anticipated implementation dates for the notes.

Morrow Sodali Ltd. (203 609 4910, +44 20 4513 6933, +852 2319 4130, naftogaz@investor.morrowsodali.com,) is the information and tabulation agent.

The consent website is https://projects.morrowsodali.com/Naftogaz.

Naftogaz’s financial adviser Lazard Freres SAS may be contacted at naftogaz.investors@lazard.com.

Naftogaz, an oil and gas company, is based in Kiev. Kondor Finance is based in the United Kingdom.

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