EP Energy signed EUR 1.0 billion banking financing, the largest deal ever for a Czech corporate borrower
The Transaction
EP Energy, a.s. (“EPE” or the “Company”) successfully signed a EUR 1.0 billion, 6-year senior facility agreement with the consortium of banks (the “Facility Agreement”). The facilities comprise of three tranches: two long term loans – a EUR 502 million amortising term loan facility and approximately CZK 10.5 billion term loan facility, and, a EUR 75 million revolving credit facility or its equivalent in CZK (the “Facilities”). The purpose of the Facilities is to provide for consolidated financing of a group of companies controlled by EPE.
With this transaction EPE has signed the largest committed banking deal ever for a Czech corporate borrower. This landmark transaction exclusively tapped the domestic loan market and changed the perception of the liquidity available thereon.
The Banks
The financing was solely coordinated by UniCredit and arranged by five Mandated Lead Arrangers and Bookrunners, being Česká spořitelna, ČSOB, ING, Komerční banka and UniCredit.
The Transaction was supported by Citibank, Commerzbank, HSBC, Raiffeisenbank, RBS and Volksbank.
UniCredit acted as both Facility and Security Agent.
The Legal Advisors
White & Case acted as legal advisor to the Lenders.
Company
EP ENERGY is a wholly owned subsidiary of ENERGETICKÝ A PRŮMYSLOVÝ HOLDING, a.s., and owns most of the group’s energy-sector assets. The EP ENERGY Group holds a significant position in the Czech energy market and comprises more than 30 companies operating in coal mining, electricity and heat production, heat distribution, and electricity and gas trading. In 2011, EP ENERGY reported total revenues of CZK 39.4 billion and consolidated operating profit (EBITDA) of CZK 7.2 billion. The group employs approximately 6,200 people and is the largest heat supplier and the second-largest electricity supplier in the Czech Republic.