Ropes & Gray has advised Virgin Media O2 on the debt financing arrangements in connection with the creation of a new B2B company, combining the direct B2B operations of Virgin Media O2 with Daisy Group, with an ownership split of 70% Virgin Media O2 and 30% Daisy Group. The merging of the businesses will create a major new force in the UK business communications and IT sector.
The combination will benefit from significant scale, offering UK businesses a comprehensive range of best-in-class digital-first connectivity solutions and managed services all under one roof, underpinned by Virgin Media O2’s next generation fixed and mobile infrastructure and Daisy Group’s digital-first operations and modern IT systems.
The transaction will be structured with approximately £1.25 billion of loan financing. Virgin Media O2 is set to raise financing at its cost of debt at closing, enabling the repayment of existing Daisy facilities through a secured intercompany loan and a further secured intercompany loan will be contributed by Virgin Media O2 as part of the completion mechanics.
The Ropes & Gray team was led by finance partners Alex Robb and Rob Haak with support from Hoey Lee, Kwame Adzatia, Edward Olsen and Talia Menzies.
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