Slaughter and May, working as an integrated team with Cravath, Swaine & Moore LLP, advised Yell Limited, a subsidiary of Hibu Group Limited, and Hibu’s subsidiaries on a £225 million high-yield bond offering and £25 million super senior revolving credit facility

Slaughter and May, working as an integrated team with Cravath, Swaine & Moore LLP, advised Yell Limited (“Yell”), a subsidiary of Hibu Group Limited (“Hibu”), and Hibu’s subsidiaries on a £225 million high-yield bond offering and £25 million super senior revolving credit facility.

The transaction involved the issuance by Yell Bondco plc, a newly-incorporated company, of £225 million 8.50% senior secured notes due 2023 (the “Notes”).  The Notes are guaranteed and secured on a senior basis by certain Hibu UK subsidiaries, including Yell, and are expected to be listed on The International Stock Exchange.  Credit Suisse Securities (Europe) Limited acted as Global Coordinator and J.P. Morgan Securities plc and Barclays Bank PLC acted as Joint Bookrunners in respect of the offering.  Credit Suisse AG, London Branch, JPMorgan Chase Bank N.A., London Branch and Barclays Bank PLC acted as Mandated Lead Arrangers in respect of the super senior revolving credit facility.

The proceeds of the offering will be used to refinance Hibu’s existing external debt by way of redemption in full of the Hibu group’s outstanding cash pay notes and the partial redemption and equitisation of its payment-in-kind (PIK) notes (the “Refinancing”).  The proceeds of the offering will also be applied in part to a deficit reduction payment under the Yell pension plan. 

The Refinancing follows a successful consent solicitation process involving the PIK noteholders and the existing shareholders of Hibu Group Limited.

Slaughter and May worked as an integrated team with Cravath, Swaine & Moore LLP.

Cravath, Swaine &amp Moore LLP: Philip Boeckman , Margaret Rallings , Ingo Berner , Yannick Adler , Alexander Green

Kieran Turton Associate
Steve Edge Senior Consultant
Phil Linnard Partner