VEON Receives Licence from U.S. Treasury’s OFAC, Amends 2025 and 2027 Notes
VEON has announced the successful amendment of its 2025 and 2027 notes following the consent of bondholders and obtaining a license from the U.S. Treasury's Office of Foreign Assets Control (OFAC). The amendments effectively cancel the economic obligations under the original notes, relieving VEON Holdings from making principal or interest payments. In May and June 2024, new notes due in April 2025, June 2025, and November 2027 were issued to eligible investors. Additionally, VEON executed the early redemption of its September 2025 and September 2026 notes, concluding the consent solicitation process initiated in April 2024. The company also settled deferred considerations related to the sale of PJSC Vimpelcom. VEON shares continue to trade without restrictions on Nasdaq and Euronext-Amsterdam.
- VEON received a license from U.S. Treasury's OFAC.
- VEON amended its 2025 and 2027 notes, effectively canceling economic obligations.
- New notes due April 2025, June 2025, and November 2027 were issued to eligible investors.
- VEON executed the early redemption of September 2025 and September 2026 notes.
- VEON concluded the consent solicitation process launched in April 2024.
- VEON settled the residual deferred consideration related to the disposal of PJSC Vimpelcom.
- None.
Insights
The recent changes to VEON's debt structure mark a significant shift for the company. Amending the original notes and receiving consent from bondholders and the U.S. Treasury's OFAC shows a level of strategic financial management aimed at improving the company’s fiscal health. By effectively cancelling the original notes, VEON reduces its liability, which should positively impact its balance sheet.
The issuance of new notes to eligible investors is another astute move, likely aimed at restructuring debt under more favorable terms. Additionally, the early redemption of the September 2025 and September 2026 notes further indicates VEON's commitment to reducing debt.
Short-term impact:
- Improved liquidity due to reduced immediate debt obligations
- Potential for a short-term bump in stock price as the market reacts to the decreased liability
Long-term impact:
- Lower interest expenses, which should enhance profitability
- Increased financial flexibility for future investments and operations
For retail investors, understanding VEON's recent financial maneuvers can provide insights into the company's strategic direction. The successful consent solicitation and the subsequent amendments to the notes not only stabilize VEON's current financial standing but also reflect an increased trust from both bondholders and regulators.
This move indicates that VEON is in a solid position to manage its debt, which bodes well for investor confidence. The decision to settle the residual deferred consideration related to the disposal of PJSC Vimpelcom also eliminates a potential future liability, further strengthening the company’s financial position.
Considerations for Investors:
- VEON's ability to renegotiate terms and receive regulatory approval may point to a robust relationship with financial and regulatory bodies.
- While the immediate financial relief is apparent, investors should monitor how VEON leverages this improved liquidity for growth or further debt management.
Amsterdam, 9 July 2024: VEON Ltd. (Nasdaq: VEON and Euronext Amsterdam: VEON), a global digital operator that provides converged connectivity and online services (“VEON” or the “Company”), is pleased to announce that, following the consent of its respective bondholders and the receipt of a licence from U.S. Treasury’s Office of Foreign Assets Control (OFAC), it has now amended the original VEON Holdings B.V. notes due April 2025, June 2025 and November 2027 (collectively, the “Original Notes”).
VEON Holdings will no longer be required to make principal or interest (including any accrued interest) payments under the Original Notes. As such, the Original Notes are effectively economically cancelled. In May and June 2024, VEON Holdings B.V. issued new April 2025, June 2025 and November 2027 notes to eligible investors who participated in the consent solicitation or the subsequent exchange. VEON Holdings also executed the early redemption of its September 2025 and September 2026 notes in full on 18 June 2024.
With these amendments, VEON now successfully concludes the consent solicitation process launched in April 2024. VEON also settled the residual deferred consideration related to the disposal of PJSC Vimpelcom.
“VEON is committed to creating and protecting value for its investors. We thank our bondholders, as well as the regulators, most notably those in the United States where VEON is listed, for their trust and continuous support” said Kaan Terzioglu, VEON Group CEO.
VEON shares continue to trade unrestricted on Nasdaq and Euronext-Amsterdam. Our investors can contact VEON Investor Relations at ir@veon.com for any further questions.
About VEON
VEON is a digital operator that provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than
Disclaimer
This release contains “forward-looking statements,” as the phrase is defined in Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Forward-looking statements are not historical facts, and are inherently subject to risks and uncertainties, many of which VEON cannot predict with accuracy and some of which VEON might not even anticipate. The forward-looking statements contained in this release speak only as of the date of this release. VEON does not undertake to publicly update, except as required by U.S. federal securities laws, any forward-looking statement to reflect events or circumstances after such dates or to reflect the occurrence of unanticipated events.
Contact Information:
Hande Asik
Group Director of Communication
pr@veon.com
Faisal Ghori
Group Director of Investor Relations
ir@veon.com
FAQ
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