Orange Switzerland parent company Matterhorn Mobile intends to offer CHF180m (US$188.3m) of floating-rate senior secured notes due 2019 to refinance existing debt, repay share premium to shareholders and pay related fees and expenses.
The…
Orange Switzerland parent company Matterhorn Mobile intends to offer CHF180m (US$188.3m) of floating-rate senior secured notes due 2019 to refinance existing debt, repay share premium to shareholders and pay related fees and expenses.
The CHF-denominated notes will be offered in a private placement to institutional investors who meet relevant regulatory requirements, Matterhorn said in a statement.
Moody’s has assigned the notes a provisional (P)B1 rating and simultaneously downgraded existing Matterhorn senior-secured debt from Ba3 or B1, specifically: €330m (CHF400m) of floating-rate notes due 2019, CHF450m of fixed-rate notes due the same year and the CHF225m Term Loan A. The existing debt was used to help finance private equity firm Apax Partners’ leveraged buyout of Orange Switzerland, completed in February this year.
Moody’s said the new notes will have the same terms and conditions and benefit from the same guarantees and security package as the existing senior secured notes. Orange Switzerland will use the net proceeds of the new offering, together with CHF20m of cash on balance sheet to repay Term Loan A and pay shareholders an extraordinary distribution totalling CHF90m, the ratings agency added.
