27 June 2024

STZ advises Eurohold Bulgaria on EUR 0.5 billion refinancing

Stoeva Tchompalov & Znepolski acted as local legal counsel to the leading Bulgarian listed holding company Eurohold in relation to the refinancing of its approximately EUR 500 million of existing debt raised in July 2021 for the acquisition of CEZ Group's business in Bulgaria, its subsequent development and investments in the energy business. Eurohold is a highly valued client of the firm and we have worked on a wide range of transactions together.

The deal comprises a new EUR 460 million 5-year syndicated secured loan and an additional EUR 65 million 5.25-year term loan. Use of proceeds of the new funding is to refinance existing EUR 360 million syndicated loan at the level of the Eurohold’s Dutch subsidiary EEEC B.V. and another EUR 125 million loan at the level of another Dutch subsidiary, EEEC II B.V. The newly arranged financing also includes EUR 15 million of capital expenditure (CAPEX) financing, provided by the European Bank for Reconstruction and Development (EBRD) for Electrodistribution Grid West EAD, the group’s distribution subsidiary, for the upgrade and development of the power distribution network that will accelerate the company's investment program in view of the upcoming liberalization of the electricity market. J.P. Morgan SE, which structured the acquisition financing for the CEZ Group in 2021, acted as the initial mandated lead arranger and bookrunner on the new debt financing.

STZ, working with a team from Morrison & Foerster (London) led by Chris Kandel, advised Eurohold on all Bulgarian law aspects of the deal, including finance, capital markets, corporate, and energy.  Linklaters, Loyens & Loeff, and Boyanov also advised on the transaction. 

Partner Iordan Tchompalov led the STZ team with instrumental support from senior associate Miroslava Iordanova and associate Tihomir Todorov and input from counsels Vania Todorova and further lawyers.