Madrid-based Jazztel, the Spanish data and telecommunications operator, has completed a $180 million credit that came in oversubscribed in spite of a brutal market for telecom credits. Miguel Salis, cfo, commented that the facility, led by J.P. Morgan Chase and launched in February, will cover the financial needs of the company over the coming years. A request for proposals was issued to several banks, but J.P Morgan Chase was drafted in having worked on a previous financing two years ago, he said, declining to name the other contenders. A combination of good pricing, familiarity with Jazztel's business plan and speed to the market were the main factors behind opting for Chase, he noted. Jazztel provides broadband solutions for data, Internet and voice services to small and medium sized businesses in Spain and Portugal.
The "A" tranche comprises a $157 million revolving credit that has a maturity date of June 2008. Pricing is LIBOR plus 33/8 % for the first year, and then the pricing is structured according to EBITDA and revenue ratios on $100 million of the revolver. The minimum pricing is LIBOR plus 2% and the maximum is LIBOR plus 33/8 %. The remainder of the facility is a $23 million performance bond backstop. The deal was originally launched at $112 million, but was upsized following strong investor demand.