We assisted Bitė Group, controlled by international asset management company Providence Equity Partners, as Lithuanian, Latvian and Estonian law counsel in a refinancing transaction. Total disclosed value of the transaction is EUR 700 million.
Largest bond issue by a private Baltic company to date
The transaction covers two parts:
- A bond issue by PLT VII Finance S.à.r.l., the parent company of Bitė Group, which borrowed EUR 650 million in the international capital markets by issuing floating and fixed rate notes due 2026: EUR 400 million of senior secured fixed rate notes and EUR 250 million of senior secured floating rate notes; and
- A EUR 50 million revolving syndicated financing transaction.
Initial purchasers of bonds and mandated lead arrangers in the syndicate are Citigroup Global Markets Limited, Deutsche Bank AG, London Branch, ING Bank N.V., London Branch, and UniCredit Bank AG. The proceeds from the bond offering, together with cash in hand, will be used to repay Bitė Group‘s existing financial debt and to return capital to shareholders. To secure the financing the issuer’s group will provide collateral packages in Lithuania, Latvia and Luxemburg.
Leading telecommunications and media group in the Baltics
Bitė Group is a leading telecommunications and media group in the Baltics. It controls a leading mobile operator in Lithuania and Latvia that focuses on meeting growing demand for a high quality network experience and excellent customer service. Bitė offers a wide range of mobile services, internet access and data services for business and residential customers through its nationwide coverage. Bitė Group also owns TV3 Group (formerly the All Media Baltics) acquired in 2017. TV3 Group is the leading pan-Baltic Media House with Free TV and Pay TV broadcasting assets together with complementary radio assets and strong digital presence. TV3 Group has a 20 year history of operating in the Baltics, with a strong track record of primarily organic growth.
Our services and team
Sorainen as local advisor on the issuer’s side advised on preparatory due diligence, drafting the financing documents, corporate authorisation, taxation and structuring cross-border security package documentation. We are continuing consulting on drafting, negotiating and perfecting the remaining security documents and other Lithuanian, Latvian and Estonian law-related matters.
We are advising the client in cooperation with international law firm Allen & Overy LLP. Our team in this transaction is led by partner Augustas Klezys and senior associate Lina Ragainytė and includes partners Rūdolfs Eņģelis, Saulė Dagilytė, counsel Stasys Drazdauskas, senior associates Dalia Augaitė, Rasa Mikutienė, Inese Heinacka, Jane Eespõld, Kaido Künnapas and other lawyers.