Clifford Chance

Clifford Chance advises ONO on the completion of its multi-stage refinancing programme

Leading international law firm Clifford Chance has advised ONO, Spain's second-largest provider of broadband internet, pay television and fixed telephony services on the offering of US$310 million high-yield notes due 2018 and the complete refinancing of its existing senior bank facility.

Simultaneously with the bond offering, ONO entered into a new senior bank facility and obtained commitments from commercial banks to refinance €1,076 million of existing bank debt. In addition to the €1,076 million in bank tranches, the new senior facility also comprises a €100 million undrawn revolving credit facility and approximately €1,981 million in SPV tranches relating to bond offerings executed by ONO since October 2010. The new senior bank facility is governed by English law whereas the old bank facility was governed by Spanish law.

John Connolly, Head of the US Securities Group in London, said: "We are delighted to have acted for ONO on a series of complex and carefully executed transactions over the past three years which have resulted in the refinancing of approximately €3.6 billion of senior secured and subordinated debt despite the persistent market turbulence."

Carlos Hernández-Canut, Finance and Banking Partner in Madrid, said: "ONO's new senior bank facility has been designed as an extremely flexible instrument as it allows ONO to incorporate new bank tranches and new SPV tranches (used to on-lend proceeds of new issuances of securities) to partially or totally refinance or replace existing tranches without having a fixed final maturity date and without having to seek the consent of lenders."

Clifford Chance advised on all aspects of the offering, providing integrated US federal securities, New York, Spanish and English law advice as well as specialised Spanish tax, US tax, telecoms regulatory and ERISA advice.

The deal team was led by John Connolly in London and Stuart Percival and Carlos Hernández-Canut in Madrid and included George S. Georgiev in London, Ruth Musgrave and Rodrigo Uria in Madrid.