Vodafone Announces Funding Plans to Facilitate Merger With AirTouch
Business Wire - March 16, 1999 15:43
BERKSHIRE, England--(BUSINESS WIRE)--March 16,
1999--Vodafone Group Plc announces today that the eleven banks which
were approached on 1 March 1999 have agreed to underwrite and arrange
the facility required to finance the merger with AirTouch Communications,
Inc. The facility documentation is expected to be signed in early April.
The eleven banks are Bank of America, Barclays, Banque Nationale de
Paris, Citibank, Deutsche Bank, Goldman Sachs, HSBC, ING Barings,
National Australia Bank, NatWest and West LB. The bookrunners are
Bank of America, Barclays, Citibank and Goldman Sachs and the facility
agent is NatWest.
As anticipated, the facility required has been reduced to $13 billion and may
be set closer to $10 billion when any necessary re balancing between the
stock and cash consideration for the merger is finalised. The
sub-underwriting stage to co-arrangers is expected to take place in early
summer, after Vodafone Group Plc and AirTouch Communications, Inc.
shareholders have approved the merger and the facility size is finally
established.
The term of the major part of the facility is for 364 days with the balance
multi-year. Pricing of the facility will be determined by the credit ratings of
the enlarged group (which should be available prior to completion of the
merger), the facility tranche selected, utilisation levels and guarantee
structure. The initial drawn margin is expected to be 60-70 basis points over
LIBOR, depending on these factors.
Following completion of the merger, a substantial part of the facility will be
refinanced in the bond and commercial paper markets through banks who
have arranged and co-arranged the facility. A euro market medium term
note programme and a US domestic commercial paper programme are
being organised and these will be activated after completion of the merger,
when dealers for these programmes will be appointed.
CONTACT: Vodafone Group Plc, Berkshire
Ken Hydon, Financial Director, 01635 33251 |
