Allen & Overy advises on Techem's EUR2.7 billion high yield bond and loan refinancing

The refinancing comprised (i) an issuance of EUR500 million 5.375% senior secured notes due 2029, (iii) a concurrent tender offer for the company’s existing EUR1,145m 2% senior secured notes due 2025, (iii) a satisfaction and discharge of the company’s existing notes remaining outstanding upon completion of the tender offer, and (iv) an extension and upsize of the company’s EUR1.8 billion term facility and EUR375m revolving credit facility. As a result of the refinancing, Techem has successfully extended its senior secured debt maturities from 2025 to 2029.

Techem is headquartered in Germany and is a leading service provider for smart and sustainable buildings. Techem is a market leader in heat and water submetering services in Germany and operates in 18 countries, holding top one and two positions in most of these countries. Since July 2018, Techem has been owned by a consortium of Partners Group, Caisse de dépôt et placement du Québec (CDPQ) and Ontario Teachers’ Pension Plan (OTPP).

The A&O team was led by high yield partner John Kicken and banking partners Philip Bowden, Matt Moore and Megan Lawrence supported by counsel Anand Karia, senior associate Odysseas Theofanis, associates Isidora Parga, Cicely Robinson, Irene Mainar, Ariel Aiash and Paridhi Srivastava, and trainee Conor Cunningham. Cross-border advice was also provided by A&O’s finance team in Germany, led by banking partner Thomas Neubaum and associate Evangelina Wiegand.