Vodafone Ukraine Completes Restructuring of Notes Due in February 2025

Cleary Gottlieb represented an ad hoc group of noteholders in relation to the restructuring of $500 million 6.2% loan participation notes due February 2025 issued by VF Funding PLC (for the sole purpose of financing a loan to Ukrainian mobile operator Vodafone Ukraine).

The restructuring involved an extension of the maturity of the notes by two years to February 2027, an increase in coupon to 9.625%, the redemption of a portion of the notes at par and a number of other amendments to the notes’ terms.

Vodafone Ukraine’s rationale for the restructuring was that the moratorium on cross-border payments imposed by the National Bank of Ukraine in February 2022 prevented it from repaying principal on the notes using funds held in Ukraine.

The restructuring was implemented through a consent solicitation launched on January 14, 2024, that received the support of over 95% of the notes and completed on February 12, 2024.

Vodafone Ukraine is a leading telecommunications company in Ukraine with 15.9 million customers. Vodafone Ukraine is part of NEQSOL Holding.

For more information, please see the press release.