With the deadline for the takeover of Greek mobile operator Wind Hellas just a week away, and a decision all but made, there is still potential for high drama.
The board of Greek mobile operator Wind Hellas has more or less approved a takeover by senior…
With the deadline for the takeover of Greek mobile operator Wind Hellas just a week away, and a decision all but made, there is still potential for high drama.
The board of Greek mobile operator Wind Hellas has more or less approved a takeover by senior bondholders, who must now convince RCF lenders that their offer is best, TelecomFinance understands. However, Weather, while having been officially told that it is not in the frame, could still end up victorious.
It is believed that the senior bondholders’ offer would see them swap their bonds for equity, while also injecting an unspecified amount of equity.
If RCF lenders decide to fight this proposal, Weather will be waiting with open arms, ready to participate in a potentially more attractive joint deal. In fact, Weather may even be willing to work with other buyers on formulating a transaction.
Wind Hellas is now controlled by its creditors, having missed a E17.5m interest payment on its E250m revolving credit facility and a E23m coupon on its E1.2bn secured notes. Less than a year ago, the company went into bankruptcy proceedings, before being rescued by Weather Investments head Naguib Sawiris in a restructuring deal that saw the interests of junior lenders (E960m and US$275m of subordinated bonds and E200m of PIK notes) written off.
The other bidders are Telenor, advised by Citigroup and Orrick, Herrington & Sutcliffe, Saban Capital, advised by UBS, Greek companies On Telecoms and Info Quest, and current Wind Hellas majority shareholder Weather Investments.
The senior bondholders are advised by Moelis & Company, while the RCF lenders have mandated JPMorgan.
Morgan Stanley and White & Case are running the sale, which is due to close on October 15.
