TDF launches loan to back French unit sale to Brookfield-led group: Reuters

(Reuters) – Telecoms masts group TDF has launched a 175 million euro (US$218.35 million) leveraged loan on its German subsidiary Media Broadcast to refinance debt and facilitate a sale of its French unit, banking sources said on Monday.

Goldman Sachs and BNP Paribas are arranging the loan and a bank meeting is scheduled to take place on Wednesday to show the deal to investors. Lender commitments are due around December 16, the bankers said.

The loan includes a 150 million euro term loan that has been priced generously to sell quickly, with an interest margin of 550 basis points over Euribor and a 98 Original Issue Discount. It is also offered with a 1 percent floor, which guarantees a minimum return for investors, the bankers said.

Private equity firms TPG, Ardian, Charterhouse and French state bank Bpifrance agreed in November to sell TDF’s French unit, with 50 percent being acquired by Canada’s Brookfield Infrastructure and the remaining 50 percent by other partners, valuing it at 3.5 billion euros .

TDF has 3.8 billion euros of existing leveraged loans and will use the proceeds of the sale to repay the debt. The shortfall will be made up with cash on balance sheet and the 175 million euros of new leveraged loans.

By Claire Ruckin

(Editing by Christopher Mangham)

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