Wind announces jumbo bond refinancing package

Fri Apr 4, 2014 3:32am EDT

LONDON, April 4 (IFR) - Italian telecom firm Wind has announced a 3.75bn-equivalent high-yield bond as part of a refinancing of its outstanding senior and PIK notes, which it is aiming to price next week.

Wind is issuing the bonds out of Wind Acquisition Finance S.A. The proceeds will be used alongside a EUR500m cash injection from Wind's owner VimpelCom to refinance Wind's EUR2.7bn-equivalent 11.75% 2017 senior notes and EUR1.3bn-equivalent 12.25% PIK.

One of the key drivers behind the refinancing is that the PIK notes would have to pay their first cash coupon in July if not repaid.

The new bond will carry a seven-year tenor and three-year call protection, and will be split into EUR1.85bn and USD2.6bn tranches. This tranche split is subject to change, however.

Roadshows start today in New York, according to a banker on the deal, before switching to London on Monday and Tuesday morning. Meetings in continental Europe will be held on Tuesday afternoon, and the bond is expected to price on either Tuesday or Wednesday.

Joint physical bookrunners are Deutsche Bank and Credit Suisse, with global coordinators BNP Paribas, Credit Agricole, and Banca IMI.

Joint lead bookrunners are Barclays, ING, Societe Generale and UniCredit, while Morgan Stanley and Natixis are joint bookrunners. (Reporting by Robert Smith, Editing by Helene Durand, Julian Baker)

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