Simpson Thacher is acting for TDC A/S (“TDC”) in connection with the sale of its 64.6% shareholding in Hungarian telecom operator Invitel Holdings A/S (NYSE AMEX: IHO) (“Invitel”) to affiliates of Mid Europa Partners, (“MEP”) a private equity firm focused on opportunities in Central and Eastern Europe.
Pursuant to the Sale and Purchase Agreement signed on September 30, 2009, TDC has agreed to sell its entire shareholding in Invitel and cause a subsidiary of TDC to transfer all of its rights and obligations under a loan agreement to affiliates of MEP for approximately €45 million.
In connection with the Sale and Purchase, Invitel also entered into a Debt Restructuring Agreement with an affiliate of MEP under which up to €210 million of Invitel’s debt will be restructured through (i) a tender offer and consent solicitation for all of Invitel’s outstanding €125,000,000 Floating Rate Senior PIK Notes due 2013, (ii) repurchases of portions of outstanding €200,000,000 Floating Rate Senior Notes due 2013 and €142,000,000 10.75% Senior Notes due 2012 from holders of such notes outside the United States, (iii) partial repayment of a subordinated term loan and (iv) issuance of a new Shareholder Loan to Invitel from MEP’s affiliate.
Invitel, formerly known as Hungarian Telephone and Cable Corp., is the number one alternative and the second-largest fixed line telecommunications and broadband Internet Services Provider in the Republic of Hungary with more than 1 million customers in Hungary. In addition to delivering voice, data and Internet services in Hungary, it is also a leading player in the Central and Eastern European wholesale telecommunications market.
The Simpson Thacher attorneys representing TDC included Mike Wolfson and Bart Gombert (Corporate/M&A); and Meredith Jones and Seojung Park (Tax). Knowledge Manager John Fitzgerald and paralegals in the London office also provided valuable assistance.