€3.7BN REFINANCING DELIVERS €60m SAVINGS

€3.7BN REFINANCING DELIVERS €60m SAVINGS

Zegona Communications plc

Landmark €3.7bn Refinancing delivers c.€60m¹ In Annual Interest Savings  

Zegona (LSE: ZEG) announces the successful refinancing of all its existing senior secured notes and senior facilities. Today's transaction delivers annual interest savings of c.€60m and extends the maturity of Zegona's capital structure beyond five years.

The €3.7bn refinancing demonstrates global credit investor support for Zegona's strategy since the acquisition of Vodafone Spain. Two years ago, the Company's annual interest cost was €294m, at March 2026 it was €230m, and going forwards it will be only €170m.²

The refinancing will close on 14 July 2026³.

New Debt Structure

·    New €1,100 million 4.25% Senior Secured Note due 2032

·    New €1,350 million E+1.75% Bullet Term Loan A due 2031⁴

·    Amended and extended €1,283 million E+2.00% Term Loan B due 2032

·    New €500 million E+1.75% Undrawn Revolving Credit Facility

The annualised interest cost of the new debt capital structure is €170m.

Previous Debt Structure

·    €1,320 million 6.750% Euro Senior Secured Note due 2029

·    €748 million 8.625% Dollar Senior Secured Note due 2029⁵

·    €1,665 million E+2.25% Term Loan B due 2029

·    €500 million E+2.25% Undrawn Revolving Credit Facility

Eamonn O'Hare, Chairman and CEO of Zegona, commented, "Today's landmark refinancing demonstrates the strength of our operational execution since the acquisition of Vodafone Spain. This transaction will deliver a c.€60m p.a. reduction in the cost of Zegona's debt, from €230m to a run rate of only €170m. The refinancing demonstrates the credit market support for Zegona and is a recognition of the significant progress in transforming Vodafone Spain over the last two years. Today's announcement marks an important step in building a stronger, simpler and more cash-generative business, set for sustainable growth."

About Zegona 

Zegona is publicly listed on the Main Market of the LSE. It was established in 2015 with the objective of investing in businesses in the European Telecommunications, Media and Technology sector and improving their performance to deliver attractive shareholder returns. Zegona is led by former Virgin Media executives Eamonn O'Hare and Robert Samuelson. In 2024, Zegona completed the acquisition of Vodafone Spain.  

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, as amended (together, "MAR").  The person responsible for making this notification is Eamonn O'Hare, Chairman and CEO.

Notes

¹ Annual interest savings of c.€60m is an estimated run rate saving post completion. Rate is calculated using Euribor which can change. Fees and expenses, including the call premium on the existing bonds, will total around €100m.

² Run rate cost of debt annualised. Cost of debt includes debt interest minus interest on cash. Cost of debt can change with market movements in Euribor.

³ The refinancing was priced the evening of 25 June 2026, and closing is expected, subject to customary conditions, to occur on July 14, 2026. The existing notes are expected to be redeemed on July 15, 2026.

⁴ E stands for Euribor, the Euro Interbank Offered Rate.

⁵ USD debt is hedged to Euros. Euro amount shown. EUR swapped coupon on the USD Senior Notes is 7.38%.