BNP Paribas, Deutsche Bank, Goldman Sachs, Royal Bank of Scotland and Bank of America are leading a bank financing for Eutelsat, a satellite provider. The proceeds of the new facility will go to pay a dividend to sponsors Eurazeo, Spectrum Equity Partners,Texas Pacific Group and Goldman Sachs.
The facility consists of a ¤1.625 billion first-lien split into a seven-year, ¤750 million term loan "A" with pricing of EURIBOR plus 2 1/4% and an eight-year, ¤875 million term loan "B" with pricing of EURIBOR plus 2 3/4%. The "A" loan is split with a delayed draw on the A2 aspect.
The facility also includes a ¤150 million revolver with pricing of EURIBOR plus 2 1/4% with a 66.67 basis points commitment fee. Additionally, there is an eight-and-a-half year, ¤475 million second-lien with pricing of EURIBOR plus 4 1/4% and ¤600 million of PIK notes. The PIK instrument has allocated and is trading with 8 3/4% offered on a yield basis, according to a lender. The company has confirmed it will probably do an initial public offering before the end of 2006. A spokeswoman could not comment on the financing.