Financial Advisor to EON Communications

Clients:

EON Communications, a start-up broadband communications company focusing on southwest Scotland and northwest England.
EON’s planned system would serve approximately 325,000 residential customers and 25,000 business customers.

Transaction:
CEA acted as exclusive financial advisor to EON, raising € 430 million of debt and Equity financing for the construction of EON’s state-of-the-art digital broadband network. Madison Dearborn Partners and TD Capital Communications Partners co-led the £110 million equity financing, with commitments of £57 million and £30 million respectively. Incepta Partners committed £13 million and GE Capital Telecom committed £10 million. TD Securities and the Bank of Scotland arranged syndicated debt financing of £155 million.

CEA's Role:

CEA was mandated to find equity and debt financing for a start-up CATV operator in a low density region during the time cable and telecom stocks were at their lowest levels
Developed business plan and defined the appropriate capital structure
Valued company
Identified and selected debt and equity sponsors
Led negotiations with debt and equity sponsors
Coordinated due diligence
Assisted in negotiations throughout the process

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