Italian operator Wind Telecomunicazioni plans to refinance senior and PIK notes by offering a jumbo €3.75bn (US$5.13bn) high-yield bond next week.
The new bond will be divided between two currencies, and is set to be split between a €1.85bn tranche…
Italian operator Wind Telecomunicazioni plans to refinance senior and PIK notes by offering a jumbo €3.75bn (US$5.13bn) high-yield bond next week.
The new bond will be divided between two currencies, and is set to be split between a €1.85bn tranche and a €2.6bn tranche, according to market reports.
The notes will be due in 2021 and have call protection for three years.
Wind will use the proceeds – along with a €500m injection from its owner, VimpelCom – to refinance €2.7bn of 11.75% senior notes due 2017 and €1.3bn of 12.25% PIK notes, which are due to pay out their first cash coupon in July.
Wind’s debt pile totals about US$14.6bn according to its parent company’s latest earnings report.
Last month VimpelCom said it was preparing a multi-step refinancing plan to improve Wind’s capital structure and that of its subsidiary, Wind Acquisition Finance.
At the time, the Russia-focused operator said: “The aim of the refinancing plan is to provide the group with significant interest cost savings, stronger cash flow generation, a de-leveraging trajectory and an extended maturity profile.”
The plan recently won consent from a majority of its lenders.
The first roadshow to market the notes has begun today in New York, a banker working on the deal told Reuters. On Monday and Tuesday, presentations will be made in London and on the continent, and the notes are set to price on Tuesday or Wednesday, the report said.
Deutsche Bank and Credit Suisse are joint physical bookrunners. Global coordinators are BNP Paribas, Credit Agricole, and Banca IMI.
