MOSCOW, March 4. /TASS/. Yandex has warned of the default risk in the event the holders of its bonds require to redeem securities worth $1.25 bln, the company said in a statement.
"Under the terms of our 0.75% Convertible Notes due 2025, in the event of a suspension of trading of our Class A shares on Nasdaq of more than five trading days, the holders of those Notes would have the right to require us to redeem their Notes at par plus accrued interest. The current principal amount outstanding is $1.25 billion. In the event that such redemption right was triggered, we would be required to issue a notice within five calendar days informing the holders of the Notes of their redemption rights. The Yandex group as a whole does not currently have sufficient resources to redeem the Notes in full," the statement said.
"In the event that we were prevented from distributing additional funds from our Russian subsidiaries to our Dutch parent company, Yandex would not have sufficient resources to redeem a majority of the Notes," the company added.
On Monday, February 28, 2022, Russia’s Central Bank announced suspension of trading on Moscow Exchange. Moreover, Nasdaq and the New York Stock Exchange halted trading in securities of a number of companies with material operations in Russia, including Yandex, the group said.
Yandex is not sanctioned now and the current situation has no effect on its partners, the company noted.
"As of today, we continue providing continuous services to our users and partners as usual. Although we can provide no assurance that the current geopolitical situation and the resulting economic developments in Russia will not adversely affect our operations and financial results in the future, we are prepared to take any necessary measures to conserve cash, consider our capital allocation and budget appropriately during this period of uncertainty," Yandex said.