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News Oct 12, 2015

Shearman & Sterling Advises on Interoute’s €590 Million Inaugural High Yield Notes Offering in connection with the Acquisition of Easynet by Interoute

Shearman & Sterling represented Interoute Finco plc, a wholly owned subsidiary of Interoute Communication Holdings S.A. (“Interoute”) on its inaugural high yield notes offering of €240 million senior secured floating rate notes due 2020 and €350 million 7.375% senior secured notes due 2020 (collectively, the “Notes”). Additionally, Shearman & Sterling’s lawyers advised Interoute in connection with its entry into a new €75 million revolving credit facility agreement.

The net proceeds from the offering, together with equity contributions from Interoute’s shareholders, will be used to finance the acquisition of MDNX Group Holdings Limited, doing business as Easynet (“Easynet”) (the “Acquisition”), as well as to refinance Interoute’s and Easynet’s existing indebtedness and for general corporate purposes. The proceeds from the offering of the Notes will be held in escrow pending the satisfaction of certain conditions precedent, including the completion of the Acquisition. The Acquisition is subject to customary closing conditions.  

Interoute is a leading European information communication technology and cloud computing company offering data transport and information communication products and services across its fibre network and data centre platform. Easynet is a leading European provider of IT infrastructure products and services, which it operates through its integrated pan-European IT platform.

The Shearman & Sterling team of lawyers in the firm’s London, Frankfurt, Paris and Washington, DC offices included London Capital Markets partner Apostolos Gkoutzinis, counsel Marwa Elborai, associates Kara Major, Ellen Shiels, Joseph Payne and Saif Alaqili; London Finance partner Peter Hayes, counsel Gabrielle Wong and Jackson Lam, associates Korey Fevzi, Sedina Aidam, Lauren Thompson, Michèle Smith, John Hutton and Akofa Tsiagbe; Frankfurt Finance partner Esther Jansen and associates Odilo Wallner and Maria Iorno; Paris Finance partner Pierre-Nicolas Ferrand, counsel Philippe Wolanski and associate Laurent Bonnet; and London Mergers and Acquisitions partner Simon Burrows and associate Joseph Bradley. The team was assisted by trainees Joelle Wong and Brook Geremew. Partner Kristen Garry and associates Adam Sternberg and Michael Daly advised on the US tax aspects of the transaction, and counsel Simon Letherman and associates Lois Howarth and Elizabeth Emerson advised on English tax aspects of the transaction.