GIGAS has entered into a syndicated financing agreement with six financial institutions for an initial amount of €60. However, the amount of this financing may be increased by an additional €30 million in the event that GIGAS undertakes a significant corporate transaction.
Banco Santander led the financing (MLA, Mandated Lead Arranger) and acted as the underwriter, and Banco Sabadell, BBVA, Caixabank, HSBC and Deutsche Bank have also participated in the financing.
The financing has been structured in several tranches aimed at covering the current debt, undertaking investments necessary for the Company’s growth (CAPEX and M&A) and having a revolving line to meet corporate needs. The financing is subject to compliance with certain business covenants and has a pricing ratchet depending on the level of leverage.
The syndicated financing is intended to finance the investments needed to attract new customers, acquire new companies, implement new customers, acquire new companies, implement convergent services, deploy new technologies and upgrade existing ones technologies and upgrade existing ones in the areas where the Company operates (Spain, Portugal, Ireland, Colombia, Chile, Mexico and Peru).
This transaction will provide GIGAS with the necessary funds to meet its organic and inorganic growth in the coming years and strengthens its financing structure with the support of the most suitable banking institutions for this new stage of growth. In addition, the Company extends the average maturity of its current debt to more than four years and with a back-loaded amortisation schedule, with a final maturity in April 2028, 20 million of cash consumption over the next three years.
The financing agreement has been formalised with the legal advice and professional services of DLA Piper and PwC Tax & Legal Services, who have advised, respectively, the financial institutions and the Company.
PwC Tax & Legal legal team advising Grupo Gigas was formed by partner Beltrán Gómez de Zayas, together with manager Jaime Hidalgo Labat and senior associates Mario Maza Morales and Miguel Salvide Alegría.
On the other hand, DLA Piper advised banks with a team led by partner César Herrero.