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UPDATE 1-Wind targeting EUR7bn-equivalent of bonds - sources
October 2, 2017 / 2:07 PM / 15 days ago

UPDATE 1-Wind targeting EUR7bn-equivalent of bonds - sources

* Around €7bn of financing aimed to be raised via high-yield bonds

* Bank loan portion of around €3bn currently in the market (Updates with loan financing details)

By Yoruk Bahceli

LONDON, Oct 2 (IFR) - Italian telecommunications provider Wind Tre is seeking to raise about €7bn-equivalent in high-yield bonds as part of its upcoming jumbo refinancing deal, according to sources close to the transaction.

The company is seeking to refinance over €10bn-equivalent of debt through a trade comprising both euro and US dollar bonds. The rest of the package is slated to be financed through leveraged loans.

The loan portion of the financing is expected to be a bank club deal and will comprise just euros. The exact size has not been finalised yet though it is expected to be around €3bn in the form of a term loan though it may include a revolving credit facility, loan sources said.

Wind was expected to tap the high-yield market this week, according to two sources.

But the sources close to the deal said it is likely to come in mid October, due to work yet to be completed on the loan portion of the financing.

“They are finalising the appetite from each of the banks in terms of participating in the Term Loan A,” one source said.

“Each of the underwriting banks needs to reconfirm its appetite,” he said.

The company’s capital structure includes a €686m term loan and around €10bn-equivalent of secured and subordinated bonds.

Wind Tre CFO Stefano Invernizzi is scheduled to attend Deutsche Bank’s annual leveraged finance conference in Arizona this week and to participate in one-on-one meetings with investors on Tuesday and Wednesday.

Investors have said that companies can use these conferences as an unofficial roadshow to begin preparing deals.

Bank of America Merrill Lynch, Deutsche Bank and HSBC are global coordinators and a number of other banks are involved, according to the sources.

Deutsche Bank declined to comment. BAML and HSBC did not immediately respond to requests for comment. (Reporting by Yoruk Bahceli, additional reporting by Claire Ruckin and Davide Scigliuzzo, editing by Sudip Roy, Julian Baker)

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