Restructuring offer from Vestel to Eurobond holders with two options

Vestel Elektronik announced that it has initiated the swap offer and consent request process, which offers bondholders two alternatives for the restructuring of its 2029 maturity Eurobonds with a total nominal value of $500 million.

According to the company's statement to the Public Disclosure Platform (KAP), investors were offered two options with different maturity, interest and principal repayment conditions for the restructuring of foreign bonds with an annual interest rate of 9.75 percent and a maturity of 2029.

The company stated that the step in question was taken within the scope of efforts to create a sustainable balance sheet structure.

In the first option, the principal will be protected and the maturity will be extended to 2035.

Within the scope of the first long-term option, the maturity of the existing Eurobonds is expected to be extended from 15 May 2029 to 15 May 2035.

There will be no deduction in the principal of investors who choose this option. However, the annual interest rate of the bonds will be reduced from 9.75 percent to 4 percent and principal repayments will be made annually.

In the second option, a 45 percent principal deduction will be applied.

In the second option offered to investors who want repayment and liquidity opportunities in the shorter term, it is planned to replace the existing Eurobonds with new bonds corresponding to 55 percent of their nominal value.

In this context, investors will be able to switch to new Eurobonds with an annual interest rate of 6 percent and a maturity of May 15, 2032, by accepting a 45 percent deduction in the principal amount of their existing bonds.

Principal repayments for new bonds will be made annually.

The company announced that it will apply for approval to the Capital Markets Board (CMB) because the second option requires the issuance of new eurobonds.

After the application is finalized, it is envisaged that the relevant bonds will be replaced with new eurobonds with a maturity of 2032.

Vestel Elektronik stated that the transaction does not aim at a new borrowing and will not cause an increase in the company's total debt level.

2041 maturity restructuring negotiations continue with banks

Vestel Elektronik reported that in addition to the restructuring process for its foreign bonds, negotiations with banks for its domestic financial debts are continuing.

Referring to the company's special event statement dated June 26, 2026, it was reminded that in the Financial Restructuring (FYY) negotiations carried out within the scope of the temporary article 32 of the Banking Law No. 5411 and the relevant legislation, it was proposed to restructure the existing debts with a maturity of 2041, with a two-year principal and interest payment grace period.

The company noted that negotiations with the banks within the scope of FYY are continuing on this offer.

On the other hand, in order for the Eurobond restructuring to be implemented, the necessary extraordinary decision must be taken at the bond holders' meeting, other conditions specified in the transaction documents must be met and CMB approval must be obtained.