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Russias Ozon, following Yandex, warns of bond payment issue – Reuters.com

MOSCOW, March 4 (Reuters) – Russia’s Nasdaq-listed e-commerce player Ozon (OZON.O) on Friday said that holders of its bond maturing in 2026 may be entitled to redeem the principal and interest accrued if trading remains halted until March 8, but has the cash in its accounts to pay.

Trading of Ozon’s shares on Nasdaq was suspended on Feb. 28 and if suspension lasts for at least seven day, the company’s $750 million unsecured convertibles bonds due in 2026 can become subject to a “Delisting Event”, the company said.

Bond holders will have two options if delisting happens. They can either be entitled to require Ozon to redeem bonds at the principal amount with accrued interest, or exercise their conversion rights at a price now equal to $86.648.

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“No such early redemption will be required if trading resumes before Tuesday, March 8, 2022,” said Ozon, which has 90% of its buyers and sellers located in Russia.

“In these challenging times, we remain focused on supporting all of our stakeholders, including investors, customers, merchants, our multiple business partners and employees to the best of our ability.”

The move followed a similar one made by Russian internet giant Yandex (YNDX.O) which on Friday warned that its trading suspension on Nasdaq could trigger a redemption right on a convertible bond that it does not have the resources to cover. read more

Unprecedented Western sanctions over Moscow’s invasion of Ukraine have hammered Russia’s financial system and investors have dumped Russian assets from the rouble to bonds and stocks.

Russia calls its actions in Ukraine a “special operation” that it says is not designed to occupy territory but to destroy its southern neighbour’s military capabilities and capture what it regards as dangerous nationalists.

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Reporting by Reuters in Moscow;
Editing by Andrea Ricci

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