TPG in €2.4 Billion Leveraged Recapitalization of Eutelsat
April 5, 2005
Cleary Gottlieb represented Texas Pacific Group and Nebozzo SARL in the leveraged recapitalization of their interest in Eutelsat S.A., along with other Eutelsat investors Eurazeo, Cinven and Goldman Sachs Partners who together held 85% of the company’s equity. The transaction involved €2.4 billion in financings.
The leveraged recapitalization was completed through the formation of a holding company, Satbirds Finance SARL, which now holds 85% of Eutelsat’s equity. In the coming weeks, the minority Eutelsat shareholders have the opportunity to tender their shares in exchange for cash and shares of Satbirds on the same economic terms as the leveraged recapitalization. BNP Paribas, Banc of America, Deutsche Bank, Goldman Sachs, and the Royal Bank of Scotland acted as arrangers.
Paris-based Eutelsat is Europe’s largest satellite operator, operating 24 telecommunications satellites in geosynchronous orbit. The company’s satellites provide television and radio broadcasts. Nebozzo is an investment vehicle controlled by TPG and Spectrum Equity Investors.