VEON announces launch of scheme of arrangement to extend 2023 Notes maturities
24/11/2022
VEON announces launch of scheme of arrangement to extend 2023 Notes maturities Amsterdam, Netherlands, 24 November 2022 13:30 - VEON Ltd. (Nasdaq: VEON, Euronext Amsterdam: VEON) ( VEON or, together with its subsidiaries, the Group ) and VEON Holdings B.V. (the Company ), a global digital operator that provides converged connectivity and online services, today announced the launch of a scheme of arrangement in England (the Scheme ) via the issuance of a Practice Statement Letter to extend the maturity of the 5.95% notes due February 2023 and 7.25% notes due April 2023 issued by the Company (together, the 2023 Notes ) by eight months from their respective maturity dates.
Rationale for the Amendments
The Scheme launched by the Company today proposes an eight-month extension to the respective maturity dates of the 2023 Notes, together with certain other amendments to the terms of the 2023 Notes and related trust deeds as further outlined in this announcement.
The Scheme represents the culmination of six months of discussions between the Group and its advisers during which they have considered multiple different potential transaction structures. If the status quo were to continue, the options available to it would be significantly constrained by the current and evolving political situation, international sanctions laws and Russian regulations. In these circumstances, the Group has concluded that a short-term extension of the maturity of the 2023 Notes represents the best option available to the Group and its stakeholders, as it will provide the Group with additional time to pursue a number of strategic transactions.
The Amendments will allow the Group time to conclude the agreed sale of its Russian subsidiary, PJSC VimpelCom ( VimpelCom ), as announced separately earlier today (see here) (the VimpelCom Disposal ), which is expected to be completed in early June 2023 (subject to receipt of required regulatory approvals, any required consent from VEON creditors and satisfaction of customary closing conditions). Under the sale agreement for the VimpelCom Disposal, VEON will receive total consideration of RUB 130 billion (approximately USD 2.1 billion[1]). Subject to receipt of the necessary licenses and/or approval from competent sanctions authorities, it is expected that the total consideration will be paid primarily by VimpelCom taking on and discharging certain notes issued by the Company, thus significantly deleveraging VEON's consolidated balance sheet. The Group considers that the VimpelCom Disposal represents the single-most material deleveraging action available to the Group, which will at the same time increase the prospect of future access to international debt capital markets, which are currently not available to the Group.
The Amendments, together with the deleveraging described above, are also expected to curtail the inefficient use of cash which would result from the payments on the Russian National Settlement Depository (the NSD ) held portion of the 2023 Notes being trapped in the international clearing systems and the principal amount of the 2023 Notes held through Russian depositaries being repaid by both the Company and VimpelCom due to the European Union's sanctions targeting the NSD, and possibly in response to United States and United Kingdom sanctions laws and regulations targeting Russia more broadly, as further described below. It will also provide short term stability and further optionality to implement the asset monetization strategy underpinning VEON's objectives to further reduce leverage and maximize its stakeholders' returns.
The Scheme launched by the Company today proposes the following changes with respect to the 2023 Notes (together, the Amendments ):
an eight-month extension of the respective maturity dates of the February 2023 Notes and April 2023 Notes to October 2023 and December 2023 respectively;
an amendment of the consent and quorum thresholds for ordinary matters and Reserved Matters (as defined in the 2023 Notes trust deeds)[2] and excluding beneficial owners of the 2023 Notes who are the target of applicable sanctions laws or regulations that prohibit them from dealing with the 2023 Notes from counting in the consent and quorum thresholds[3]; and
payment of an amendment fee of 75bps payable on the 2023 Notes outstanding on their respective amended maturity dates.
Subject to the Amendments being successfully implemented, and completion of the VimpelCom Disposal, the Group currently intends to use excess liquidity to redeem financial liabilities to deleverage and reduce its interest obligations.
Background
Over the past nine months, the Group has successfully strengthened its liquidity position, and this will remain a key priority in the near term. However, despite the resilient performance of its underlying operating companies, which are considered largely self-sustaining, VEON's ability to upstream cash for debt service is currently impaired by currency and capital controls in two of its major markets (Ukraine and Russia) and other geopolitical/FX pressures affecting emerging markets generally, including the countries in which the Group has operations.
In addition, the conflict between Russia and Ukraine and developments since February 2022 with respect to sanctions laws and regulations have resulted in unprecedented challenges for VEON, limiting access to the international debt capital markets in which VEON has traditionally refinanced maturing debt and so hampering its ability to refinance indebtedness. Without a change in the status quo, the situation is likely to remain challenging, including as a result of the withdrawal of VEON's credit ratings by rating agencies due to VEON's current exposure to Russia.
Blocking of NSD Payments
As a result of sanctions laws and regulations imposed
LINK: | https://www.veon.com/media/media-releases/2022/veon-announces-launch-o... |
See more stories from vimpel |
Europe Stories
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
28/04/2024
Mediahaus delivers the first SRT live-streaming sports production over 5G with URSA Broadcast G2
Mediahaus delivers the first SRT live-streaming sports production over 5G with U...
23/04/2024
Creative UK launches manifesto calling for more investment in creative R&D; revised approach to trade and exports
Entitled Our Creative Future, the manifesto calls for radical new action' t...
23/04/2024
Audiotonix secures landmark' investment
The company has secured investment from private equity firm PAI Partners, which also holds a stake in outside broadcasting company EMG By Jenny Priestley Pub...
23/04/2024
James Cameron backs Marlow Film Studios proposal
Cameron also said he recognised Marlow as a potential UK and European base for his new company, LIGHTSTORM 3D By Matthew Corrigan Published: April 23, 2024 ...
23/04/2024
IBC launches 2024 Innovation Awards with new categories
The five categories cover Content Creation, Content Distribution, Content Everywhere, Social Impact and Environment & Sustainability By Matthew Corrigan Publ...
23/04/2024
Pascal Fratellia leaves Olympics role at EBU
He played a central role in securing key broadcast rights, including the FIFA World Cup 2018 and 2022 By Matthew Corrigan Published: April 23, 2024 He pla...
23/04/2024
Niels Steenstrup appointed CEO of Thales InFlyt Experience
Facebook Twitter LinkedIn We thank TK for his leadership and dedication to our customers' success. We wish him well on his retirement, said Yannick ...
23/04/2024
Thales opens a new System Testing Centre for German F126 project
Facebook Twitter LinkedIn On April 23rd 2024, Thales, the German Navy and German military procurement agency, BAAINBw (Federal Office of Bundeswehr Equipm...
22/04/2024
UKTV Ventures partners with Elder, in airtime-for-equity deal
22 April 2024 - Award-winning broadcaster UKTV has today announced it has invested in the award-winning online care marketplace, Elder, using its multi-million ...
22/04/2024
Taylor Swift's THE TORTURED POETS DEPARTMENT' Breaks Multiple Spotify Records in Less Than 24 Hours
It's a beautiful day to be a Swiftie. On April 19, Taylor Swift dropped her ...
22/04/2024
Adapting to Landscapes With LEE Filters
In this video, LEE Filters ambassador Jordan Banks ventures into Snowdonia National Park in Wales. Faced with less-than-ideal weather conditions, he adapts his ...
22/04/2024
Ross Video expands graphics portfolio with Bannister Lake Software acquisition
The Chameleon solution provides access to real-time data from a range of sources, enabling users to construct tickers, L-bars, snipes, web widgets and full fram...
22/04/2024
What happened in Vegas: 2024 edition
TVBEuropes editor Jenny Priestley highlights some of the main talking points at this years NAB Show By Jenny Priestley Published: April 22, 2024 TVBEurope...
22/04/2024
Rohde & Schwarz expands footprint in India by opening new state-of-the-art facility in Bengaluru
Rohde & Schwarz expands footprint in India by opening new state-of-the-art facil...
22/04/2024
Comscore at the 19th Annual Needham Technology, Media & Consumer Conference
Comscore at the 19th Annual Needham Technology, Media & Consumer Conference RESTON, Va., April 22, 2024 Comscore (Nasdaq: SCOR), a trusted partner for plannin...
22/04/2024
CODA Audio system is Crowning Glory for Brooklyn Cultural Hub
Crown Hill Theatre in Brooklyn, New York, officially opened its doors with a red-carpet event in early December 2023. The brainchild of entrepreneur and musicia...
22/04/2024
Cian Cobhin's An Taobh Tuathail marks 25 years on air
An Taobh Tuathail (ATT), RT Raidi na Gaeltachta's flagship alternative radio, presented by Cian C obh in show turns 25 in May 2024. The acclaimed music ...
20/04/2024
Taylor Swift's THE TORTURED POETS DEPARTMENT Breaks Multiple Spotify Records in Less Than 24 Hours
It's a beautiful day to be a Swiftie. On April 19, Taylor Swift dropped her ...
19/04/2024
Thank You for visiting us at NAB 2024!
Thank You for visiting us at NAB 2024! Thank you for joining us at the ToolsOnAir booth during NAB Show 2024! We were delighted to showcase our latest inno...
19/04/2024
How Spotify Approaches Safety With Sarah Hoyle, Global Head of Trust and Safety
Spotify's mission is to unlock the potential of human creativity by giving a million artists the opportunity to live off their art and billions of fans the ...
19/04/2024
Spotify and Taylor Swift Create a One-of-a-Kind Library To Celebrate THE TORTURED POETS DEPARTMENT'
It's a beautiful day to be a Swiftie. Today, Taylor Swift dropped her 11th s...
19/04/2024
How 1185 Films created the VFX on new horror, All You Need Is Death
Simon Wilkinson, head of VFX at 1185 films, talks about the technology behind the newly-released horror By Matthew Corrigan Published: April 19, 2024 Updat...
19/04/2024
Could Sony be preparing a bid for Channel 5's parent company?
The global electronics company is said to be considering joining forces with investment firm Apollo Management to bid for Paramount Global By Jenny Priestley ...
19/04/2024
EBU report highlights contribution of free-to-air sport broadcasting
The report broke the economic footprint of EBU member sports broadcasting into three main areas By Matthew Corrigan Published: April 19, 2024 The report b...
19/04/2024
Rohde & Schwarz and VIAVI support European OTIC in Berlin for O-RAN conformance certification
Rohde & Schwarz and VIAVI support European OTIC in Berlin for O-RAN conformance ...
19/04/2024
Riedel launches Bolero Connect for seamless integration with PunQtum
Wuppertal April 19, 2024 Riedel launches Bolero Connect for seamless integration with PunQtum A pioneer in the field of digital intercom, Riedel has recently ...
19/04/2024
2024 ANNUAL GENERAL MEETING OF KUDELSKI SA
Ad hoc announcement pursuant to Art. 53 LR Cheseaux-sur-Lausanne, Switzerland - April 19, 2024 - The Annual General Meeting of Kudelski SA (SIX:KUD.S) was held...
19/04/2024
RT NEWS ANNOUNCES SAMANTHA LIBRERI AS NEW EASTERN CORRESPONDENT
RT News is pleased to announce the appointment of RT journalist, Samantha Libreri, as Eastern Correspondent. Samantha will be reporting and providing analysis...
19/04/2024
Documentary Murder of a GAA Chairman' sheds light on the unanswered questions of the family of Sean Brown
Documentary Murder of a GAA Chairman sheds light on the unanswered questions of ...
18/04/2024
First Look: Tom Durant Pritchard joins the cast of crime drama Miss Scarlet for its fifth series
Tom Durant Pritchard as Alexander Blake Thursday 18 April 2024 Tom Durant Prit...
18/04/2024
How today's storage and memory decisions underpin future creativity
Ann Keefe, Regional Director - UK and Ireland at Kingston Technology, explains how storage and memory decisions made now are underpinning creativity in the futu...
18/04/2024
Escape Studios obtains UKVI licence to support international students
The newly acquired UKVI licence enables Escape Studios to recruit and retain international students By Matthew Corrigan Published: April 18, 2024 Updated: ...
18/04/2024
NAB 2024 popular among first time visitors
Attendees from more than 163 countries were present, including 34 delegation buying groups from around the world By Matthew Corrigan Published: April 18, 202...
18/04/2024
2024-04-18
Apple has reduced its overall greenhouse gas emissions by more than 55 percent since 2015, the company shared today in its 2024 Environmental Progress Report. T...
18/04/2024
Thales secures three major contracts to modernize the Portuguese railway infrastructure
Facebook Twitter LinkedIn Thales alongside partners SISINT and CONECTICABO...
18/04/2024
RT Prime Time experiment reveals disturbing content recommended to 13 year old TikTok users in Ireland
In response to growing concerns raised regarding the adverse impact of TikTok co...
18/04/2024
Remembering Alf McCarthy and Larry Masterson
We were saddened to learn this morning of the passing of our friend and former colleague, Alf McCarthy who died yesterday. We remember Alf as a popular present...
17/04/2024
Spotify's Michael Krause Talks Industry Trends Ahead of Our Music and Podcasting Summits in Germany
On April 18 and 19, experts from across the audio industry-including artists, pu...
17/04/2024
Spotify Brings Entrepreneurs and Trailblazers Together to Talk the Future of Tech in the UK
With its particular combination of talent, ambition, culture, and, of course, wo...
17/04/2024
NextGen Partners With Howard University Professor Nikole Hannah-Jones on Student Podcasting Course
At Spotify, we want to equip student creators with the tools and resources neede...
17/04/2024
Colorfront showcases upgrades across product range
Colorfront has introduced AI vision-analysis tools to assist master QC operations with detecting framing anomalies, dead pixels, bright titles and sparkles By ...
17/04/2024
Meet the Founder and director
By TVBEurope Staff Published: April 17, 2024 Updated: April 18, 2024 Rory Springthorpe, founder and director at outside broadcasting company Vivid Broadc...
17/04/2024
HMS Networks completes a placement of 3,500,000 shares, raising proceeds of SEK 1,400 million
To read about the placement of shares, please confirm your location...
17/04/2024
Putting the spotlight on Global Shading Day
Posted on 17 Apr 2024 Creating traction and momentum around Global Shading Day was a key objective for the British Blind and Shutter Association in 2024. The ...
17/04/2024
HMS Networks explores the conditions to carry out a directed share issue of approximately SEK 1,400 million
To read about the directed share issue, please verify your country...
17/04/2024
ASTRA Media Factory has won Best of Show 2024 Award at NAB!
ASTRA Media Factory has won Best of Show 2024 Award at NAB! We are pleased to announce that our product ASTRA Media Factory has won in this year's Best of...
17/04/2024
2024-04-17
Apple today announced new progress to expand clean energy around the world and advance momentum toward Apple 2030, the company's bold goal to be carbon neut...
16/04/2024
A Spirit Between Worlds
Directed by H l na Klotz, La V nus dargent (aka Spirit of Ecstasy) presents the tale of Jeanne Francoeur (played by Claire Pommet), a young woman striving to es...