Slaughter and May is advising ISS, one of the world's leading facilities services companies, on its complex refinancing and extension of debt. On 4 March 2013, ISS requested a 3 year extension of DKK 18.6 billion worth of facilities which were set to mature in December 2014 and April 2015. Simultaneously, ISS sought lender consent for a number of amendments to its senior facilities intended to increase both operational and refinancing flexibility around the use of divestment proceeds as well as certain post-IPO flexibilities. In addition, ISS announced the intention to refinance its EUR 600 million Second Lien Facility which was set to mature in June 2015 through the raising of new senior debt and sought amendments to permit such refinancing.

By the deadline on 21 March, consent was obtained at a level well in excess of the required majorities to all the amendments which were requested, and over 92% of the facilities which were invited to extend had agreed, meaning that approximately DKK 17.1 billion of ISS' debt will be extended to December 2017 or April 2018.  Furthermore, the tranches refinancing the Second Lien were oversubscribed multiple times and ISS has agreed to implement the refinancing by way of the addition of two new senior debt tranches, drawing down approximately EUR 330 million and USD 350 million respectively.

The refinancing of the Second Lien, the extension of the relevant facilities and the implementation of the requested amendments are expected to be completed by the end of April.

In a similar way to the work undertaken on the previous debt extension in 2011, Slaughter and May worked in an integrated team with firms around the world, including Davis Polk & Wardwell LLP and Gorrissen Federspiel.

Contacts

Financing: Robert Byk (partner), Matthew Tobin (partner), Azadeh Nassiri (associate), Sarah John (associate), Latifah Meghji (associate)

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