Xavier Niel’s group successfully places an inaugural bond issue of 3.7 billion euros.
An operation that “Testifies to the support of investors for the decision to delist the group and the solid prospects for development in Europe”, Iliad announces on October 14 that it has carried out a quadruple-tranche bond of approximately 3.7 billion euros, with 15 European and American investors such as, for example, BNP Paribas, Crédit Agricole Corporate and Investment Bank, Crédit Industriel et Commercial SA, Credit Suisse Bank (Europe), JP Morgan and Société Générale.
“With this issue, iliad Holding successfully inaugurates its entry into the so-called “high-yield” market. This is the largest high-yield bond issue by a European issuer so far in 2021, and the largest issue by a European telecommunications group since October 2017 ″, indicates Xavier Niel’s group, which will have to pay around 3 billion euros to exit the stock market.
This loan is made up of tranches in euros and dollars, including a first of 1,100 million euros with a 5-year maturity, a second of 750 million euros with a 7-year maturity, and two others of 1,200 million euros. 5-year maturity and $ 900 million 7-year maturity.
“This operation met strong demand which enabled iliad Holding to optimize the cost of financing to around 5.3% on average for an average maturity of around 6 years”, we learn.
An alternative to a traditional bank loan, the compulsory issue is a financing method consisting of creating a new bond and selling it to investors. Its advantage is to remain alone in the capital of the company, the capital and the interest of the loan are reimbursed only at the maturity of the loan (between 5 and 7 years).