CZK 9.125 Billion Recapitalization of Falcon Successfully Completed by Mandated Banks

The financing was arranged by a group of Mandated Lead Arrangers including Ceska sporitelna, a.s. (“CS”), Ceskoslovenska obchodni banka, a.s. of KBC Group (“CSOB”), Citi, Erste Group Bank AG (“Erste”), ING Bank N.V., Raiffeisenbank Bank International AG / Raiffeisenbank, a.s. and Société Générale.  

CSOB and Erste were Joint Coordinators of the financing, with Erste acting as Documentation Agent. CSOB will act as Facility Agent and CS as Security Agent.

The financing allows for an additional increase in the senior secured facilities up to CZK 10 billion (approximately €400 million), and currently comprises a CZK 5.475 billion amortizing term loan A with tenor of  4.5 years and a CZK 3.650 billion bullet term loan B, maturing in 5.5 years. The net proceeds of the Senior Facilities will be distributed to Falcon’s shareholders.

A limited syndication of the Senior Facilities is expected to be launched in due course.

The transaction represents one of the the largest recapitalizations executed in Europe since 2008. This illustrates the strong relationship that Mid Europa shares with its core banks, which supported the financing despite prevailing difficult conditions in the financial markets.

Mid Europa Partners is a leading independent private equity firm focused on Central and Eastern Europe. Operating from London, Budapest and Warsaw, Mid Europa Partners advises and manages funds with asset value of approximately €3.2 billion. The Mid Europa Partners team has been investing in Central and Eastern Europe since 1999.