Milbank Advises Zegona Communications plc on Its €4.2B Financing for Acquisition of Vodafone Spain

Milbank LLP advised Zegona Communications plc (Zegona) in the committed debt financing of €4.2 billion, comprising a €500 million term loan A facility, €3.7 billion corporate bridge facility and €500 million revolving credit facility. Together with €900 million of financing from Vodafone, the term loan A facility and the corporate bridge facility will fund the acquisition of Vodafone Spain for an enterprise value of €5 billion.

Zegona was established in 2015 with the objective of investing in businesses in the European telecommunications, media and technology sector and improving its performance to deliver attractive shareholder returns. The proposed acquisition marks Zegona's third transaction in Spain. Vodafone Spain has a significant share in the domestic mobile, fixed broadband and TV markets, operating across the value spectrum with three strong offerings – Vodafone, Lowi and Finetwork – providing comprehensive low to high-end offerings.

The Milbank team was led by European Leveraged Finance/Capital Markets partners Tim Peterson and Sarbajeet Nag, special counsel Joji Ozawa, and associates Chris Smith, Obinna Mezu, Gautam Sundaresh and Caroline Green. The team also had assistance from Tax partner Russell Jacobs, special counsel Andrew Callaghan and associate Cosmos Fung.