Greek mobile operator Wind Hellas is to be taken over by its bondholders after a three-and-a-half month sale process, announced the company’s owner, Weather Finance III.
Under the restructuring proposal, the new owners have agreed to invest E420m in new…
Greek mobile operator Wind Hellas is to be taken over by its bondholders after a three-and-a-half month sale process, announced the company’s owner, Weather Finance III.
Under the restructuring proposal, the new owners have agreed to invest E420m in new money to repay a revolving credit facility debt and hedging liabilities, while also covering restructuring fees and expenses and providing a “significant liquidity injection” into the company. They will own 100% of the company.
The Senior Secured Notes offer was underwritten by the SSN Ad Hoc Committee, which comprises Mount Kellett Capital Partners, Taconic Capital Advisers, Providence Equity Capital Markets, Anchorage Capital Group, Angelo Gordon & Co and Eton Park International, which together own over 57% of the outstanding E1.225bn in SSNs. Their bid became official once they were able to demonstrate that approximately 77% of the SSN holders had officially agreed to support the SSN Offer.
This deal means that the company will be cleared of some E1.867bn in third party debt.
The bondholders were advised by Moelis & Company.
The offer is subject to the standard terms and conditions.
Once it does close, Weather Finance III said that unspecified “senior telecom executives and senior members of the Greek business community” will be appointed to the board, working closely with current Wind Hellas CEO Nassos Zarkalis, who has held the reins since December 2009.
Zarkalis stated: “This is an important step in the restructuring of WIND Hellas to secure our competitive position and commitment to provide outstanding service to our customers. Following the closing of the transaction, WIND Hellas will be financially well positioned and have the liquidity to compete from a position of strength. We look forward to working with the SSN Ad-Hoc Committee to close the restructuring as quickly as possible”.
Egyptian businessman Naguib Sawiris, who controls Wind Hellas parent Weather Investments, also presented an offer to buy back the company. His offer reportedly comprised E180m in cash and plans to refinance Wind Hellas’s revolving-credit facility by raising E290m in new bonds. Under this plan, SSN holders would have been offered E110m of bonds and 40% of the company.
Announcing Q2 results last month, Wind Hellas reported a 28% fall in revenue to E202.3m, with EBITDA halving to E39.1m.
