Wind plans €500m bond – report
Italy’s Wind Telecomunicazioni plans to issue a dual-currency bond valued at €500m via its subsidiary Wind Acquisition Finance (WAF), according to Fitch.
The ratings agency said the senior secured notes will …
Wind plans €500m bond – report
Italy’s Wind Telecomunicazioni plans to issue a dual-currency bond valued at €500m via its subsidiary Wind Acquisition Finance (WAF), according to Fitch.
The ratings agency said the senior secured notes will mature in 2018. Guaranteed by the parent company, the notes will be issued on the same terms as WAF’s existing bond due February 2018, which consists of 7.375% senior secured notes in euros and 7.25% of senior secured notes in US dollars. The new issue will also benefit from the same security package, comprised of first priority interest in Wind shares and some assets, including receivables.
Wind will use the proceeds to help repay an “expensive” bridge loan, Fitch said, adding that the transaction will not affect the telco’s amount of secured debt.
In August, Wind – which Egyptian businessman Naguib Sawiris sold to Russia’s Vimpelcom early last year – reportedly obtained a waiver to raise a €800m bridge loan to enable it to participate in Italy’s September 2011 4G spectrum auction.
The telco, Italy’s third largest mobile operator, spent just less than €1.2bn on six blocks of spectrum.
According to a Dow Jones report, Deutsche Bank, BNP Paribas, Banca IMI, Barclays, Credit Suisse, ING and Societe General are lead managers for the bond, which it said is expected to price tomorrow (4 April).
Fitch has assigned the proposed issue a ‘BB+’ rating.
Neither Wind nor Vimpelcom was immediately available for comment.
