October 4 (SeeNews) - Bulgarian automotive holding company Avto Union [BUL:8AVB] said on Tuesday that it has extended the maturity of its 6.8 million levs ($3.43 million/ 3.48 million euro) bond by five years, to December 10, 2027.
The extension was approved by bondholders at a meeting held on September 30, the company said in a stock exchange filing.
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In addition, the annual coupon rate was cut to 4% from 4.5%, with effect from December 10, 2022.
Under the new schedule, bondholders will receive 250,000 levs of the outstanding principal amount of 4.55 million levs on December 10, 2022. Repayment of principal in portions of 250,000 levs will be made together with next nine coupon payments. The last 2.3 million levs portion of the principal and the final coupon payment will be paid out on December 10, 2027.
Overall, Avto Union is due to make coupon payments totalling 642,136 levs until maturity.
At the end of July, the company's owner Eurohold Bulgaria [BUL:EUBG] reached a deal to sell Avto Union to financial services company Asterion Bulgaria [BUL:8AVA].
(1 euro = 1.95583 levs)