Wind Hellas Sub Bondholders Offer Incentive

LONDON (Reuters) – Subordinated bondholders of Wind Hellas will offer senior secured noteholders an incentive to accept their proposal to bid for the company, said Michael Hodges of Aladdin Capital Management.

Aladdin Capital is co-ordinating the subordinated bondholders’ committee established to protect their interest in Wind Hellas. The incentive includes a fee of 400 basis points, for the first 50 percent of accepting bondholders only.

All bondholders will receive an uplift of margin of 1.5 percent cash and 1 percent as payment-in-kind (PIK) notes, said Frank Sekula, at Jefferies International, financial adviser to the subordinated bondholders’ committee.

The subordinated bondholder committee has a fully underwritten equity commitment to fund its bid and has the support of senior unsecured bondholders should the subordinated bondholders be selected as the winning bid for the assets of Hellas 2 Telecommunications.

The subordinated bondholders agreed to offer at least 117 million euros in new money in their bid for the company on October 27. 

A source familar with the bid said the total size of new money to be injected into Wind Hellas by the subordinated note holders is between 150 million and 200 million euros.

The other bid is from shareholder Weather Investments, majority controlled by Naguib Sawaris.