Bank debt for the fixed-line Irish telecom services provider Valentia Telecommunications has been trading fairly actively over the past month, with about $30-50 million trading across all tranches. Traders said the name changed hands as high as the 1007/8 and 101 range, which is as high as names trade in Europe, one noted. Deutsche Bank, Allied Irish Bank, Bank of Ireland, Barclays Capital, Goldman Sachs, The Royal Bank of Scotland, Citigroup and Morgan Stanley are among the lenders in the facility. European loan players explained that when the loan came to market it was able to raise more than E400 million via institutional investors.
The facility includes a E730 million, seven-year amortizing term loan and a E150 million, seven-year revolver both priced at EURIBOR plus 21/4% until Aug. 6, 2004. Afterward, the spread will run between 11/2% and 21/4% depending on the company's consolidated net borrowings to consolidated adjusted EBITDA ratio. The facility also comprises a E260 million, eight-year term loan priced at EURIBOR plus 23/4% and a E260 million, nine-year term loan priced at EURIBOR plus 31/4%. Moody's Investors Service has assigned the facility a Baa3 rating, noting that proceeds from the sale of the company's directories business, Golden Pages, lower than expected capital expenditures, and cost reductions have allowed Valentia to reduce debt and improve credit ratios. Calls to Peter Lynch, the company's cfo, were not returned.