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Debt Information

 
 

Debt Profile

Debt Profile

At June 30, 2020, we carried a total debt balance (including accrued interest) of €5,660.4 million, of which €1,429.4 million principal amount is related to the € and USD-denominated Senior Secured Fixed Rate Notes due March 2028 and €3,151.2 million principal amount is owed under our 2020 Amended Senior Credit Facility with maturities ranging from April 2028 through April 2029. Our total debt balance at June 30, 2020 also included a principal amount of €365.5 million related to our vendor financing program and €4.0 million for the outstanding portion of the 2G and 3G mobile spectrum licenses. The remainder primarily represents lease obligations associated with the Interkabel Acquisition and lease liabilities following the adoption of IFRS 16 as of January 1, 2019.

At June 30, 2020, we carried €365.5 million of short-term debt related to our vendor financing program, all of which is maturing within less than twelve months. This represented an increase of €10.6 million and €36.9 million versus December 31, 2019 and March 31, 2020, respectively. For the full year 2020, we still anticipate our vendor financing program to remain relatively stable compared to the end of 2019. As of February 2020, we have reduced the applicable margin on our future short-dated commitments under the vendor financing program by 15 basis points to 2.10% over EURIBOR floored at 0%. Given the aforementioned size of the program, this will have a modest accretive impact on our Adjusted Free Cash Flow.

In the first half of 2020, we finalized several accretive (re)financing transactions. In January 2020, we successfully issued and priced a new 8.25-year USD 2,295 million Term Loan (“Facility AR”) and a new 9.25-year €1,110 million Term Loan (“Facility AQ”). We have used the net proceeds of these issuances to redeem in full the previous Term Loans AN and AO of USD 2,295 million and €1,110 million, respectively. Through this leverage-neutral transaction, we succeeded in reducing the margin on both term loans by 25 basis points, which further solidifies our Adjusted Free Cash Flow profile after the October 2019 refinancing of the 4.875% Senior Secured Notes due 2027.

In April 2020, we successfully issued a new 6.2-year €510.0 million revolving credit facility, replacing our former €460.0 million revolving credit facilities with certain availabilities up to June 2023. As such, we succeeded in extending and upsizing our revolving credit facilities, further strengthening our liquidity profile. The new RCF has the following characteristics: (i) maturity of May 31, 2026, (ii) a margin of 2.25% over EURIBOR (floored at 0%) and (iii) a commitment fee of 40% of the margin. The new RCF can be used for general corporate purposes, which may include acquisitions, distributions to shareholders and general working capital requirements of the Company.  

In April 2020, we also completed the 10% repurchase of our 3.50% €600.0 million Senior Secured Fixed Rate Notes due March 2028. As a result of this transaction, the principal amount under these Notes decreased to €540.0 million, leading to annual cash interest savings of €2.1 million further adding to our robust Adjusted Free Cash Flow profile.

Excluding short-term liabilities related to our vendor financing program, we face no debt maturities prior to March 2028 with a weighted average maturity of 8.0 years at June 30, 2020. In addition, we also had full access to €555.0 million of undrawn commitments under our revolving credit facilities at June 30, 2020 with certain availabilities up to May 2026.

For more information on our debt instruments and payment schedule at June 30, 2020, we refer to the Q2 2020 Investor & Analyst Toolkit.