Zegona Communications (LSE:ZEG), the LSE-listed owner of Vodafone Spain, has completed a €3.7bn refinancing of all its existing senior secured notes and facilities, cutting its annual interest bill by approximately €60m.
The transaction brings Zegona's run-rate interest cost down to €170m, from €230m at March 2026 and €294m at the time of the Vodafone Spain acquisition two years ago, representing a near-halving of the annual financing burden over that period.
The new debt structure comprises a €1.1bn fixed-rate senior secured note at 4.25% due 2032, a €1.35bn floating-rate bullet term loan at Euribor plus 1.75% due 2031, an amended and extended €1.283bn term loan at Euribor plus 2.00% due 2032, and an undrawn €500m revolving credit facility at Euribor plus 1.75%.
The refinancing also extends the maturity of Zegona's capital structure beyond five years, replacing notes and loans that had been due in 2029.
Eamonn O'Hare, Chairman and CEO, said the deal was "a recognition of the significant progress in transforming Vodafone Spain over the last two years" and marked "an important step in building a stronger, simpler and more cash-generative business."
The refinancing is expected to close on 14 July.
