Ufinet International nets financing commitment for Cinven investment

Ufinet International has received committed financing from a Credit Suisse-led group in connection with the announced investment in the company by the Seventh Cinven Fund, according to sources. Additional arrangers are Barclays, UBS, Natixis, Scotia and Santander.

Cinven announced Dec. 21 that the Seventh Cinven Fund agreed to make a majority investment in Spain-based Ufinet at an enterprise value of about €2.5 billion. Cinven is the existing owner of Ufinet International. Also, existing minority co-shareholder Enel will re-invest a minority stake as part of the transaction.

Ufinet's existing term loan is expected to be refinanced in connection with the deal. The company currently has a covenant-lite term loan B due July 2025 that is priced at L+450, with a 0% Libor floor. That loan was originally placed in 2018 to finance the acquisition of the business by the Sixth Cinven Fund.

Ufinet is a fiber network operator that leases optical fiber infrastructure and provides transmission services across 17 countries in Latin America.