Daily News: March 10, 2017

Goldman Sachs Leads eir New $1.7B Senior Facilities

eircom Holdings (Ireland) has successfully agreed to and priced a new €1.6 billion ($1.7 billion) senior facilities agreement to replace the existing facility which has been in place since 11 June 2012.

The value of the new SFA remains at €1.6 billion and carries a coupon of Euribor +3.25%, a reduction of 75 basis points compared to the current margin. It has resulted in €12 million of interest savings. Both existing and new lenders have committed to participate and the new agreement will take effect in mid-April 2017 with a maturity date of 2024.

Richard Moat, eir CEO, said, “The new SFA reflects the growing confidence that both the market and investors have in our business and the company’s ability to execute on our strategy. This has been built upon significant fixed and mobile investment right across Ireland over the past four and a half years. We have already delivered high speed broadband to 70% of the homes and businesses in Ireland together with 95% 4G mobile population coverage. This infrastructure investment supports our vision to bring new and exciting converged offerings that combine broadband, mobile and content to our customers.”

Huib Costermans, eir CFO, said, “The company’s improved financial and operational performance coupled with the recent credit rating upgrades, provided an opportunity to further optimize our balance sheet and reduce the annual cost of debt for the company. As a result of the new SFA, we will save approximately €12 million ($12.7 million) annually in the cost of servicing the loan. We have also improved the terms of the agreement by reducing the covenants, moving greater control back to the company and streamlining the decision making process.”

Goldman Sachs International was the lead left bookrunner and global coordinator, together with Deutsche Bank, London Branch and J.P. Morgan, who were also global coordinators and bookrunners. BNP Paribas and Credit Suisse International were mandated lead arrangers and bookrunners. Barclays Bank and Morgan Stanley Bank International were also bookrunners on the transaction.