Ashurst advises the group of RCF lenders on the €1.9 billion debt restructuring of Netceed
Ashurst has advised the RCF lenders on the €1.9 billion LBO debt restructuring of Netceed. The closing of this landmark transaction follows a binding agreement entered into by Netceed’s majority shareholder, private equity firm Cinven, and all lenders to recapitalize the Group, subject to customary terms and conditions.
Netceed (formerly ETC Group), a global leader in delivering supply chain solutions across the telecom industry, was acquired in 2022 by Cinven from private equity firm Carlyle. The restructured debt included a mix of term loan B and RCF debt.
It is one of the rare recent landmark transactions where, despite the number of creditors involved, the deal was unanimously approved and resulted in a conciliation agreement sanctioned by the Nanterre court of economic affairs, without the need for the opening of a safeguard.
The transaction will significantly strengthen the Group’s balance sheet to allow it to deliver its strategic plan. As part of the recapitalization, ownership of the Group will be transferred to its lenders, including in particular a majority group composed of investment firms Pemberton, Blue Owl, and Hayfin. The agreement will also provide the Company with access to an additional new money line to significantly enhance the group's liquidity. The transaction represents one of the largest lenders-led restructurings in Europe’s telecom-equipment sector
The Ashurst team was led by Paris restructuring partner, Noam Ankri, assisted by Astrid Hubert-Benoist (counsel), Elsa Decourt (counsel) and Victoire Gabai (associate).
The restructuring team in London included Olga Galazoula (partner) assisted by Jake Overend (senior associate).
The finance team included, in Paris, Pierre Roux (partner), assisted by Kevin Perraudin (associate), Annissa Baghafor (associate) and Milan Czajka (associate), in Luxemboug, Katia Fettes (partner), Anna Kozakiewicz (senior associate), Amina Lamkhatri (associate), in London, Callum McPherson (partner), and in Belgium, Arnaud Wtterwulghe (partner), assisted by Maxime Nuyts (associate).
Corporate team in Luxembourg included Isabelle Lentz (partner), assisted by Fabio Vittore (senior associate).
The tax team included, in Paris, Emmanuelle Pontnau-Faure (partner) assisted by Sabrina Ben Hassou (associate), and in Luxembourg, Alexandra Clouté (partner) assisted by Adnand Sulejmani (senior associate).
On the US aspects, the RCF Lenders were advised by Davis Polk & Wardwell LLP (New York).
Financial advisory firms Ondra and Moelis also acted as financial advisers of the RCF lenders.
Other counsels included, for the ad hoc group of TLB lenders, legal advisor Gibson Dunn and financial advisor Lazard, for the minority TLB lenders group, legal advisor Weil Gotshal & Manges, and for the company, legal advisor Freshfields and financial advisor Rothschild.
