Zegona Communications Reduces Debt Costs with Successful Repricing
Why we think this is good
The successful repricing of Zegona's €1.7bn Term Loan B facility, reducing the all-in interest rate to 4.35%, is a positive development that will lower the company's financing costs. This is expected to have a significant impact on Zegona's financials, with annualized total interest reducing by around €80m. The transaction demonstrates the credit market's support for Zegona and its improving financial position.
Key Points
- Zegona's subsidiary Zegona HoldCo Limited has successfully repriced its €1.7bn Term Loan B Facility
- The all-in interest rate has been reduced to 4.35%, with the margin decreasing by 50 basis points to 2.25%
- The Term Loan B will be reduced to €1.665bn on receipt of the FiberPass proceeds
- This transaction contributes to Zegona's declining interest cost trajectory, with annualized total interest reducing by c.€80m since the start of its investment in Vodafone Spain
Summary
Zegona Communications plc has successfully completed the repricing of its €1.7bn Term Loan B Facility, reducing the all-in interest rate to 4.35%. This transaction will contribute to Zegona's declining interest cost trajectory, with annualized total interest reducing by c.€80m since the start of its investment in Vodafone Spain. The repriced Term Loan B is the lowest priced euro telco term loan B in the market today.