Zegona Communications has refinanced a bridge loan for its €5 billion (US$5.54 billion) acquisition of Vodafone Spain. Milbank advised Zegona on the placement.

Established in 2015, Zegona invests in businesses in the European telecommunications, media and technology sector.

Following the completion of its acquisition of Vodafone Spain on May 31, Zegona announced the planned refinancing of its acquisition financing with long-term financing placed with Spanish and international institutional investors.

The refinancing, completed in July, comprised €1.3 billion of 6.750% senior secured notes due 2029, US$900 million of 8.625% senior secured notes due 2029, a €920 million five-year term loan facility B, and a US$400 million five-year term loan facility B.

As part of the refinancing process, Zegona securfed strong credit ratings including corporate and secured ratings from S&P at BB and BB respectively, Moody’s at Ba3 (positive) and Ba3, and Fitch at BB+ and BBB-.

The original debt financing package comprised a €500 million term loan A facility, a €3.7 billion corporate bridge facility and a €500 million revolving credit facility, in addition to equity.  Allen & Overy advised Deutsche Bank, ING and UniCredit as bookrunners and underwriters in connection with the 2023 debt financing.