BOYANOV & Co. Advised J.P. Morgan on the Financing of CEZ Bulgarian Business’ Acquisition by Eurohold
BOYANOV & Co. advised J.P. Morgan AG (as Initial Mandated Lead Arranger), BNY Mellon Corporate Trustee Services Limited (as General Security Agent), and DSK Bank AD (as Bulgarian Security Agent) on EUR 360 million facilities to Eastern European Electric Company B.V. (an indirect subsidiary of Eurohold Bulgaria – a major Bulgarian listed holding company) financing the acquisition of a group of seven targets in Bulgaria, among which the electricity distribution utility companies in North-West Bulgaria from CEZ a.s. (the Czech Republic). The acquisition is the biggest transaction in the Bulgarian energy sector in the last 17 years and one of the major energy deals in the region.
The financing deal was completed in а record short period of time and involves a syndicate of international financial institutions, foreign and local Bulgarian banks.
BOYANOV & Co. advised on all Bulgarian law aspects of the financing of this landmark M&A deal, such as the deal structuring, discussions with Bulgarian banks – members of the syndicate on Bulgarian law matters, legal due diligence of the targets, drafting the Bulgarian law-governed security, as well on certain regulatory aspects of the financing transaction. White & Case LLP, London acted as lead counsel to the MLAs.
The financing was closed on 26 July 2021, followed by the successful closing of the acquisition transaction on the next day – 27 July 2021.
BOYANOV & Co.’s team was led by finance partner Damian Simeonov and included energy practice group partner Alexander Chatalbashev (in relation to the energy law regulatory aspects of the transaction), finance senior associate Ralitsa Nedkova and other partners and associates.