Spanish telecoms operator Eurona accesses a €45M loan from Magnetar Capital for the development of 5G, in view of its €200M turnover forecast for 2020. In addition, the Swedish group EQT has acquired the 80% from the operator Adamo Telecom.
Eurona obtains €45M loan from Magnetar Capital
Euronathe Spanish telecommunications operator listed on the Mercado Alternativo Bursátil (MAB), has signed a €45M loan with US fund manager Magnetar Capital. The loan has a 5-year term, the coupon is Euribor plus an applicable margin (9.25%) and settlement is semi-annual starting 30 June 2018. Magnetar has a performance fee based on the value of the Company, which can be paid in cash or shares, at Eurona's discretion.
The funds provided by Magnetar Capital will be used to boost Eurona's 2020 business plan, as their economic returns are linked to the future evolution of the company's results. The MAB teleco expects a turnover in 2020 of €200M, at a key moment for the telecommunications sector, marked by the convergence of technologies and connectivity solutions, the connected car revolution or the development of the expected 5G, in whose research the company participates with various projects.
With more than ten years of experience, Eurona offers connectivity in areas with a digital divide or with deficiencies in Internet access and telephony services, especially in rural areas and municipalities with less than 100,000 inhabitants. It currently operates in 16 countries, where it provides indoor and outdoor wifi service to 30,000 customers, including many of the major hotel chains, as well as 46 airports and two heliports in Spain and Panama Airport.
Magnetar Capital is a US fund manager founded more than ten years ago with the aim of providing alternative financing for companies with high growth potential. It currently manages a portfolio with assets valued at around €12.3 billion.
Eurona Corporate Finance Analysis
EQT acquires the 80% from Adamo Telecom
The Swedish investment group EQT Partners has acquired the 80% from the fibre optic operator Adamo TelecomThe Barcelona-based company, through its EQT Mid Market fund. The 20% shares will be held by the firm's founder and CEO, Fredrik Gillström, and the management team.
Founded in 2009, Adamo Telecom is a telecommunications operator that develops its own fibre-optic infrastructure to provide high-speed Internet connectivity. Until now, Adamo's shareholding was split between Swedish (55%) and Spanish (45%) shareholders. The Spanish company had a turnover of around €7.8M in 2016, up 39.2% from €5.6M in the previous year.
EQT Mid Market intends through this transaction to support Adamo's continued development and accelerate its growth by encouraging investment in fibre access deployment. The current strong growth in data consumption, as well as the increased use of streaming services, cloud applications and other services with high consumption can lead to Adamo's expected growth.
Adamo has offices in Barcelona and Madrid, and offers high-speed Internet services through its own fibre access network in Spain, covering more than 100,000 homes. In addition, Adamo was the first provider to offer 100 Mbps, 300 Mbps and 1 Gbps services over fibre.
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