Vestel Elektronik announced a proposal to restructure USD 500 million of foreign bonds maturing in 2029. It presented two options, long-term and short-term, and will begin the process of obtaining SPK approval for the short-term option.
Vestel Elektronik announced a structure covering USD 500 million of foreign bonds as part of the financial restructuring of its current debt. It also indicated that restructuring negotiations with banks are under way.
According to the announcement, the Eurobonds concerned mature in 2029, carry annual interest of 9.75%, and will be restructured with no change to principal. Creditors will be offered two options, long-term and short-term.
Option A is a long-term reset that extends maturity to 2035, carries a 4.00% interest rate and provides for annual principal repayments. Option B is a short-term option under which part of the principal is exchanged for new bonds maturing in 2032 and carrying 6.00% interest.
Because Option B involves the issuance of new debt, an application has been filed with the Capital Markets Board (SPK) as part of the related procedures. Following approval, the current Eurobonds are scheduled to be exchanged for new bonds maturing in 2032.