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Telediffusion de France

The EURO1.34 billion senior debt for Telediffusion de France is progressing smoothly, with mandated arrangers BNP Paribas and Citibank/SSSB still reporting very few declines to date. Lead arrangers sub-underwriting EURO100 million will receive an underwriting fee of 50bp, with a further 100bp upfront on their EURO75 million target final take, while arrangers sub-underwriting EURO75 million with a target hold of EURO50 million will get a 35bp underwriting fee and a 80bp participation fee. Some 30 banks and around 12 institutional investors have been invited at this level.

The facility comprises a EURO500 million seven-year three-month amortising term loan A at 225bp over Euribor, a EURO115 million eight-year three-month bullet term loan B1 and a EURO115 million bullet eight-year three-month bullet term loan B2 both at 287.5bp, a EURO255 million nine-year three-month bullet term loan C at 350bp and a EURO255 million eight-year three-month amortising capex facility D at 262.5bp. There is also a EURO100 million seven-year three-month revolving credit at 225bp over Euribor, with a commitment fee of 75bp.

Leverage is 3.8x senior debt to EBITDA and 4.9x total debt to EBITDA. Under the terms of the deal, Charterhouse and CDC Ixis Equity Capital will jointly hold a 45 per cent stake in TdF and the largely state-owned CDC (Caisse des Depots) will hold 19 per cent. The deal values the 64 per cent stake in the transmission towers business at EURO1.6billion.

The 10-year EURO300 million mezzanine financing for the deal will be split into two tranches, one with and one without warrants. Pricing on the warrantless tranche is 11.5 per cent over Euribor, split 5 per cent cash and 6.5 per cent roll-up, while the warranted tranche pays 3.75 per cent cash, 5.5 per cent roll-up plus warrants.

Mezzanine specialist ICG has committed EURO100 million to the mezzanine portion.

The market is offered 100bp for tickets over EURO50 million and 75bp upfront for tickets up to EURO50 million to participate in the mezzanine.