Clifford Chance

Clifford Chance advises ONO on its USD 1 billion high yield offering

Clifford Chance's London and Madrid offices have just advised ONO, Spain's second largest provider of broadband internet, pay television and fixed telephony services, on the Rule 144A/Reg. S offering of USD 1 billion 8.875% Senior Secured Notes due 2018. 

The notes were issued by an independent orphan special purpose vehicle which lent the gross proceeds from the offering to Cableuropa, a wholly-owned subsidiary of ONO, pursuant to a new tranche of Cableuropa's existing senior credit facility. The new tranche is secured on a pari pasu basis with other loans under the senior credit facility. The notes are governed by New York law.

The present offering, which was upsized from the originally planned USD 400 million [due to market demand], follows on the success of the July 2011 tap offering of €300 million senior secured notes and an offering in October 2010. The gross proceeds of the offering will be used to repay indebtedness under the senior credit facility. Following the issuance of the notes, the notes tranches under Cableuropa's senior credit facility collectively represent approximately 49.8% of the total outstanding and available indebtedness under the senior credit facility.

The deal team was led by John Connolly in London and Carlos Hernández-Canut in Madrid and included Michael Dakin, George S. Georgiev, Rodrigo Uria, and Erin Levin.