UPDATE 2-TRLPC-Altice lowers pricing on acquisition financing-bankers

jueves 29 de enero de 2015 13:28 GYT

(Updates pricing details and recasts)

By Claire Ruckin

LONDON Jan 29 (Reuters) - Pricing has tightened on an 825 million euro-equivalent ($932.83 million) loan backing telecoms group Altice's acquisition of Grupo Oi's Portuguese operations after strong demand for the paper, banking sources said on Thursday.

A 400 million euro tranche has been reverse flexed to pay 425 basis points-450 basis points (bp) over Euribor from 475bp-500bp guidance. An Original Issue Discount (OID) has also tightened to 99.5 from 99. A $500 million tranche will also pay 425bp-450bp over Libor at 99 OID from initial guidance of 500bp-525bp at 99 OID, the banking sources said.

A 1 percent Euribor/Libor floor, which guarantees a minimum return for investors, remains unchanged.

"Demand for the financing is phenomenal," a banker close to the deal said.

Lenders have been asked to recommit to the loan by the end of the day on Jan. 29.

The bonds are also due to price tighter than initially whispered after being multiple-times oversubscribed. Price talk emerged on Jan.29.

Bookrunners on the loan are Goldman Sachs, JP Morgan, Credit Suisse, Deutsche Bank, Morgan Stanley, BNP Paribas, Credit Agricole, Banca IMI, Citigroup, HSBC, Nomura, RBC, Societe Generale and UniCredit. ($1 = 0.8844 euros) (Editing by Christopher Mangham)