Mobile and broadband provider Freenet announced it has replaced its existing debt with a bank loan and corporate bond package totalling E740m.
The new financing consists of a three-year E240m syndicated loan, a E100m revolving credit facility and a…
Mobile and broadband provider Freenet announced it has replaced its existing debt with a bank loan and corporate bond package totalling E740m.
The new financing consists of a three-year E240m syndicated loan, a E100m revolving credit facility and a fiveyear E400m corporate bond. Commerzbank, Deutsche Bank and Unicredit were joint lead managers of the bond placement, while LBBW and WestLB were co-lead managers. The bond carries a 7.125% coupon.
Freenet had E623m net debt at the end of 2010, and currently has a market cap of E1.1bn.
Freenet CFO Joachim Preisig said: “By significantly extending the maturity of our borrowings from 2014 to 2016 and by being less exposed to future interest rate risks, we increase the company’s planning certainty.
“In an environment of rising interest rates, we were able to keep our financing costs at the same level, while also diversifying the sources of our debt,” he added.
In recent years, Freenet has sold several of its assets as it looked to reduce debt. The company was also rumoured to be on the block back in 2009.
Last year, private equity firm Permira sold its final 10.1% stake in Freenet for E114.8m. Goldman Sachs and UBS managed the sale of Permira’s 12.9 million shares, which were sold for E8.90 each. Before that, in September 2009, Permira had already sold a 14.9% stake in Freenet, again through a placement, raising E176.7m with shares priced at E9.25.
Cyrte Investments and Goldman Sachs also sold a respective 4 million and 4.5 million shares in Freenet.
Internet services company United Internet and telecom service provider Drillisch are now Freenet’s largest shareholders with a joint holding of 17.12%.
