Mercury Bondco to redeem notes, repay revolver with new note proceeds

New York, April 30 – Mercury Bondco plc will redeem all of its existing outstanding debt using proceeds from an offering of €2.2 billion of new senior secured notes by subsidiary Nexi Capital SpA and €400 million of senior secured notes, according to an announcement.

The notes to be redeemed are Mercury Bondco’s €900 million of 8Ό%/9% senior secured PIK toggle notes due 2021, €200 million of senior secured floating-rate PIK toggle notes due 2021, €600 million of privately placed senior secured floating-rate PIK toggle notes due 2021 and €600 million of privately placed 7 1/8%/7 7/8% senior secured PIK toggle notes due 2021.

The company will also repay borrowings outstanding under its €100 million revolving credit facility.

Cash on hand will also be used for the refinancing.

The issuance of the new notes and the refinancing is being carried out as part of the reorganization of the group, which includes the spinoff of the regulated banking activities to shareholders.

Completion of the reorganization is expected on July 1.

Mercury Bondco is based in London and is the majority shareholder of Nexi SpA, formerly known as Istituto Centrale delle Banche Popolari Italiane SpA, a Milan-based financial services provider.

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