Zegona gets €4.7 billion debt commitment for Vodafone Spain purchase

By Sara Rosenberg

New York, Oct. 31 – Zegona Communications plc has received a commitment for €4.2 billion of debt financing and a €500 million revolving credit facility to support its €5 billion acquisition of Vodafone Spain from Vodafone Group plc, according to a news release.

Deutsche Bank AG, ING Bank NV, Sucursal en Espana and UniCredit Bank AG are leading the financing and acting as bookrunners, and Deutsche Bank, Filiale Luxembourg, ING Bank, Sucursal en Espana and UniCredit are acting as underwriters of the debt.

The debt financing will be reduced from an equity raise which is expected to target between €300 million to €600 million in gross proceeds, with €3.7 billion net debt at completion assuming a €600 million equity raise, representing 2.9x leverage.

Other funds for the transaction will come from €900 million in financing from Vodafone through an investment in preference shares.

Closing is expected in the first quarter of 2024, subject to Zegona shareholder approval and regulatory clearances.

Zegona is an investor in businesses in the European TMT sector. Vodafone Spain is a mobile network operator providing mobile and fixed line services to both consumer and business customers across Spain.

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