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Hungary's Invitel restructures debt with repurchases, tender offer
By Angela McDaniels
Tacoma, Wash., Nov. 2 - Invitel Holdings A/S has paid down €250.29 million of its cash-pay debt under a series of transactions that will result in Mid Europa Partners Ltd. becoming Invitel's controlling shareholder, according to a company news release.
Mid Europa completed the first stage of the acquisition of 10,799,782 Invitel shares, representing 64.6% of the outstanding shares, from TDC A/S for $1 per share. The second stage of the acquisition will close by March 31.
Mid Europa has purchased all of TDC's rights and obligations under a €34.1 million subordinated pay-in-kind loan, which has been amended to increase the loan by up to €91.4 million.
Invitel subsidiary Magyar Telecom BV used the additional proceeds from the PIK loan to purchase about €85 million of its 10¾% senior notes due 2012 and senior floating-rate notes due 2013 for a total of €72 million and to repay €10.7 million of its €32 million subordinated term loan.
Hungarian Telecom Finance International Ltd., a company controlled by Mid Europa, completed a tender offer under which it purchased €154,593,779 principal amount, or 87%, of HTCC Holdco I BV's floating-rate senior PIK notes due 2013.
In connection with the tender offer, HTCC solicited and has received consents from the noteholders to make some amendments to the indenture governing the notes.
In addition, Invitel said the core lending banks under its senior debt facility have given their consent to some amendments and a number of additional banks have provided financing under the facility.
Credit Suisse Securities (Europe) Ltd., BNP Paribas and Calyon were the joint dealer managers for the tender offer.
Plans for the restructuring were announced Oct. 1.
Invitel is a fixed line telecommunications and broadband internet services provider based in Budaors, Hungary.
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