Fried Frank and Evergreen Legal acted as co-counsel to the MASMOVIL Group (MASMOVIL) in connection with the launch of a cov-lite term loan B (TLB), with the deal totaling €1.7 billion. Goldman Sachs and BNP Paribas served as global co-ordinators on a €1.45 billion TLB to finance the proposed transaction, as well as €250 million of capex and revolving facilities. Barclays, BBVA, JPMorgan, Santander and Societe Generale CIB also served as joint book runners and mandated lead arrangers. The proceeds of the TLB will be used to repurchase the company's €883 million convertible bonds from Providence Equity Partners (Providence) and to refinance its existing €890 million bank debt. As part of the transaction, Providence committed to invest €120 million in MASMOVIL in the purchase of shares at a price of €18.45 per share, which will lead to the ownership of 8% of the company's capital, including its current participation, which is 3%.
MASMOVIL'S revolving credit facility and capex line will include a margin ratchet based on an Environmental, Social, and Governance (ESG) rating from a third-party provider. The group is the first borrower in Europe to incorporate the ESG criteria into a leveraged loan. MASMOVIL is the fourth largest telecommunications operator in Spain offering fixed line, mobile, and internet services to residential customers, businesses, and operators, through its main brands: Yoigo, MÁSMÓVIL, Pepephone, Llamaya, and Lebara.
The Fried Frank team was led by corporate partners Neil Caddy and Jons F. Lehmann and included corporate partner Darren A. Littlejohn and corporate associates Graham Greenwood, Shyam Kotadia, and Ariana Omar.
The Evergreen Legal team was led by banking partner Alberto Campo Caballero and included associates Josefina Ortells and María Heredero.