eir announces the successful pricing of €750 million of senior secured notes and a new €400 million term loan facility
Dublin, 26 April 2019 - eir announced today the successful pricing of the offering by its subsidiary, eircom Finance DAC, of €750 million senior secured notes due 2026 and by its subsidiary, Eircom Finco S.à r.l., of a new €400 million term loan facility under its existing senior facilities agreement. Due to significant demand, the aggregate principal amount of the offering of the notes and the new facility was increased to €1.15 billion from the previously announced amount of €850 million.
The €750 million senior secured notes will have a term of 7 years (until 2026) and will bear an interest rate of 3.5%.
The proceeds of the offering of the notes and the drawing under the new facility will be used (i) to redeem eircom Finance DAC’s €700 million in principal amount of senior secured notes due 2022, (ii) to prepay €200 million of our existing €1.6 billion term loan facility, (iii) to make a €100 million distribution to our shareholders after May 31, 2019, (iv) to put cash on balance sheet for future use in the business and (v) to pay fees and expenses in connection with the new financing.
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