VimpelCom is considering a multi-step refinancing of its indebted Italian unit Wind Telecomunicazioni.
The plan could include a cash injection of €500m (US$695.5m) from VimpelCom, the Amsterdam-based telco said in a statement.
This would be a…
VimpelCom is considering a multi-step refinancing of its indebted Italian unit Wind Telecomunicazioni.
The plan could include a cash injection of €500m (US$695.5m) from VimpelCom, the Amsterdam-based telco said in a statement.
This would be a condition to the successful refinancing of payment-in-kind notes guaranteed by Wind’s immediate parent, Wind Acquisitions Holding Finance (WAHF) and various other factors.
Wind and subsidiary Wind Acquisition Finance (WAF) are seeking lenders’ consent to amend the Italian operator’s senior facilities agreement “to provide operational flexibility and facilitate the implementation of the multi-step refinancing plan,” according to the statement.
The amendments would include up to an additional €800m of transaction costs, fees and expenses in debt incurrence to allow for the refinancing of the PIK notes.
The plan also incorporates a concurrent refinancing of WAF’s junior secured notes maturing in 2017.
Requested amendments also include extending the maturity profile of the senior facilities agreement.
“The aim of the refinancing plan is to provide the group with significant interest cost savings, stronger cash flow generation, a deleveraging trajectory and an extended maturity profile, VimpelCom said.
The telco’s consent request expires on 2 April. The cash injection and refinancing are also subject to relevant corporate approvals, including from VimpelCom’s supervisory board.
VimpelCom has been looking for a way to cut Wind’s debt pile, which totals about US$14.6bn according to the parent company’s latest earnings report. Other options were rumoured to include merging the Italian unit with another local operator or selling its mobile towers.
Bankers speaking to TelecomFinance suggested previously that a sale of Wind’s towers could be put on the backburner if VimpelCom opted for a refinancing.
