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A&O advises Apollo-managed funds on high yield bond refinancing of EG Group

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Allen & Overy has advised Apollo-managed funds on the USD2.1 billion high yield bond refinancing of EG Group, consisting of USD1.1 billion 12% senior secured notes due 2028, EUR468 million 11% senior secured notes due 2028, and USD500 million senior secured floating rate cash pay / PIK notes due 2028. The floating rate notes were privately placed with Apollo-managed funds. 

The bond refinancing marks the final part of EG Group’s USD5.4 billion debt refinancing program. With the bond transaction, EG Group has successfully completed its debt refinancing and fully addressed its near-term 2025 maturities and most of its 2026 maturities. To support the debt refinancing, EG Group has taken USD4 billion of deleveraging actions, including a USD2.5 billion sale of the majority of its UK and Ireland operations to Asda with proceeds used to repay debt. The sale was a condition to EG Group’s USD3.2 billion amend and extend of its existing term loans from 2025 to 2028, both of which have now completed. EG Group and Asda are owned by brothers Zuber and Mohsin Issa and private equity group TDR Capital.

The A&O team advising on the high yield bond refinancing was led by high yield partner John Kicken supported by senior associate Odysseas Theofanis, and associates Sampada Bannurmath and Isidora Parga. Banking partner Annette Kurdian and associate Hershil Kotak also advised on the transaction.

A&O also previously advised Apollo-managed funds on the financing for Asda’s acquisition of EG Group’s UK and Ireland business