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Latham & Watkins Advises on the Two Bond Offerings by the Masmovil Group in Connection With the Acquisition of Euskaltel

October 21, 2021
Cross-border team represents the initial purchasers in the over €2 billion high yield bond offerings by Lorca Telecom Bondco, S.A.U. and Kaixo Bondco Telecom S.A.U.

Latham & Watkins advised the initial purchasers in connection with the offerings of Lorca Telecom Bondco, S.A.U.’s €1,550,000,000 4.00% Senior Secured Notes due 2027 and Kaixo Bondco Telecom, S.A.U.’s €500,000,000 5⅛% Senior Notes due 2029. Both issuers are part of the Masmovil Group, the fourth largest Spanish telecoms operator, controlled by funds managed by Cinven, Providence and KKR.

Deutsche Bank (lead left), Barclays, BNP Paribas, Goldman Sachs and Banco Santander acted as Joint Global Coordinators and Joint Bookrunners, and Banco Sabadell, BBVA, BofA Securities, Crédit Agricole CIB, Mizuho Securities and Morgan Stanley acted as Joint Bookrunners.

The proceeds from the offerings of the notes were used to refinance a portion of the bridge financing used by the Masmovil Group for the acquisition of Euskaltel, S.A. and its subsidiaries, which closed on August 10, 2021, and to pay fees and expenses in relation to the transaction.

The Latham team was led by Jeff Lawlis with Paolo Bernasconi, Michele Vangelisti and Kaan Ulgen in respect of US law aspects, and by Ignacio Pallares and Fernando Colomina with Carmen Esteban, Marino Aineto, Pablo Alarcón and Leticia Sitges in respect of Spanish law aspects. Advice was also provided on US tax matters by New York partner Jocelyn Noll with New York associate Ron Moore; on Spanish tax matters by Madrid partner Jordi Dominguez with Madrid associate Blanca Vázquez de Castro; on UK tax matters by London partner Karl Mah and associate Aoife McCabe; and on general finance matters by London partners Mohamed Nurmohamed, Jennifer Brennan, and Yen Sum with counsel Anand Karia and associates Harry Lee and Theon Chalken.