Eircom has priced €350m of 2020 notes at par in the Irish telco’s first bond issue since being taken over by its senior lenders in June of last year.
The notes, upsized by €40m from original plans to raise €310m, carry a 9.25% coupon.
JP Morgan…
Eircom has priced €350m of 2020 notes at par in the Irish telco’s first bond issue since being taken over by its senior lenders in June of last year.
The notes, upsized by €40m from original plans to raise €310m, carry a 9.25% coupon.
JP Morgan and Goldman Sachs managed the sale, with BofA Merrill Lynch, Deutsche Bank and BNP Paribas listed as bookrunners.
Eircom said the proceeds will be used to repurchase debt at less than par value under its existing senior facilities agreement.
A local report claimed the bulk of proceeds will be used to redeem a share of the telco’s outstanding senior loans, most of which mature in 2017, at 92 cents in the euro.
Eircom’s examinership restructuring process last year left it with a debt pile of around €2.4bn, after senior lenders agreed to shave off 40% of total debt in return for acquiring its equity.
Previously investor group Singapore Technologies Telemedia (STT) and employee share trust ESOT held stakes of 65% and 35%.
If the telco is sold within the next three years it will reportedly have to pay a 1% bonus on top of having to buy back the 2020 bonds.
The notes are due to close on or around 20 May.
