MasOrange Secures €11 Billion for Fiber Joint Venture with Vodafone and Debt Refinancing
The company aims to strengthen its financial position and enhance infrastructure investment.
MasOrange has successfully secured €11 billion in financing through a consortium of nearly 20 banks to refinance its debt and support future infrastructure for its joint venture with Vodafone Spain, the company announced in a statement.
Out of the total funding, €6.25 billion will be allocated to improving MasOrange's financial conditions while €4.75 billion is designated for the infrastructure of the upcoming fiber joint venture.
The financing for the infrastructure has been structured to achieve an investment grade rating, which MasOrange interprets as an indication of a solid credit profile and a positive outlook for the Spanish telecommunications market.
According to the company, all proceeds from this operation related to the joint venture will be utilized to accelerate its debt repayment plan, striving to achieve a target leverage ratio of 2.75 times debt to EBITDA (earnings before interest, taxes, depreciation, and amortization).
The remaining €6.25 billion is intended to optimize MasOrange's financial structure and reduce the weighted average cost of its debt.
Notably, in March, the company restructured its debt in response to falling interest rates, finalizing a loan issuance of €4.3 billion due in March 2031 with an interest margin of 2.75% over Euribor.
Post-restructuring, MasOrange’s net debt stands at a leverage ratio of 4.5 times EBITDA after leasing.
Ludovich Pech, CFO of MasOrange, remarked on the successful acquisition of investment-grade financing for the fiber venture and the favorable refinancing of its debt, stating it reflects the strong confidence of its financial partners in the company.
Out of the total funding, €6.25 billion will be allocated to improving MasOrange's financial conditions while €4.75 billion is designated for the infrastructure of the upcoming fiber joint venture.
The financing for the infrastructure has been structured to achieve an investment grade rating, which MasOrange interprets as an indication of a solid credit profile and a positive outlook for the Spanish telecommunications market.
According to the company, all proceeds from this operation related to the joint venture will be utilized to accelerate its debt repayment plan, striving to achieve a target leverage ratio of 2.75 times debt to EBITDA (earnings before interest, taxes, depreciation, and amortization).
The remaining €6.25 billion is intended to optimize MasOrange's financial structure and reduce the weighted average cost of its debt.
Notably, in March, the company restructured its debt in response to falling interest rates, finalizing a loan issuance of €4.3 billion due in March 2031 with an interest margin of 2.75% over Euribor.
Post-restructuring, MasOrange’s net debt stands at a leverage ratio of 4.5 times EBITDA after leasing.
Ludovich Pech, CFO of MasOrange, remarked on the successful acquisition of investment-grade financing for the fiber venture and the favorable refinancing of its debt, stating it reflects the strong confidence of its financial partners in the company.
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