Milbank Advises Salt on Bank/Bond Refinancing

Milbank LLP advised Salt on an offering of €250 million senior secured notes due 2024 (the “2024 Notes”) and an offering of €575 million senior secured notes due 2026 (the “2026 Notes”). The notes were priced at 100% of their aggregate principal amount and the coupon will be 2.625% per annum in respect of the 2024 Notes and 3.125% per annum in respect of the 2026 Notes. The deal also consisted of a new 7-year term loan Facility B of up to €500 million and a new 5-year revolving facility of up to CHF 75 million.

The proceeds from the financing, together with the proceeds of a sale of towers and cash on hand, will be used to redeem Salt’s existing 4.875% senior notes due 2023, 3.625% senior secured notes due 2022, 3.875% senior secured notes due 2022 and senior secured floating rate notes due 2023, and to pay certain fees and expenses in connection with the transactions.

This is the first example of a secured bond pricing inside a loan of the same maturity since 2010. The deal launched on September 4, 2019 and is expected to close on September 19, 2019.

The Milbank team is being led by Global Leveraged Finance/Capital Markets partners Rebecca Marques and Sarbajeet Nag with support from special counsel Joji Ozawa and associates Alastair Gillespie, Andrew Bechtel, Serguei Chevtchenko, Ignacio Perez and Philipp Engel. The team also included New York tax associate Jules Mugema.