VMED O2 launches upsized $850 million and £675 million 10-year green notes; pricing Tuesday

By Paul A. Harris

Portland, Ore., June 22 – VMED O2 UK Financing I plc launched an upsized £1.29 billion equivalent dual currency offering of 10-year non-call five-year green senior secured notes (Ba3/BB-/BB+) on Tuesday, according to market sources.

A £675 million tranche launched at 4½%, at the wide end of the 4 3/8% to 4½% talk and in line with initial guidance in the mid-4% area.

An $850 million tranche launched at 4¾%, at the wide end of the 4 5/8% to 4¾% talk and tight to initial guidance in the high 4% area.

The deal, which is upsized from £1.13 billion equivalent, is set to price on Tuesday.

Barclays, Credit Suisse and JPMorgan are lead bookrunners for the sterling-denominated tranche.

BNP Paribas, Credit Agricole CIB, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, ING Financial Markets LLC, Mediobanca Group, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG, Natixis Securities, RBC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital Inc., SG Americas Securities LLC, SMBC Nikko Securities America Inc., Bankinter, BBVA Securities Inc., BofA Securities, CaixaBank SA, HSBC Securities Inc., Lloyds Securities Inc., NatWest Markets Securities Inc. and Banco Sabadell are also joint bookrunners for the sterling-denominated tranche.

Barclays will bill and deliver.

Lead bookrunner JPMorgan will bill and deliver for the dollar-denominated tranche.

Barclays, BNP Paribas, Credit Agricole, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, ING Financial Markets, Mediobanca Group, Mizuho Securities, Morgan Stanley, MUFG, Natixis Securities, RBC Capital Markets, Santander Investment Securities, Scotia Capital, SG Americas Securities and SMBC Nikko Securities are joint bookrunners on the dollar-denominated tranche.

Proceeds will be used to refinance the company’s £1.124 billion term loan A and finance or refinance new or existing eligible green projects. The additional proceeds, resulting from the approximately £160 million equivalent upsizing of the deal, will be used to partially redeem the dollar-denominated 5½% notes due 2026.

VMED O2 is a London-based mass media and telecommunications company.

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