A&O Shearman advised a consortium of 15 banks in connection with Verisure's new financing package. The transactions supported Verisure's recent EUR13.7 billion IPO—the largest in Europe since 2022 and the largest-ever European private equity-backed IPO.
The financings included a EUR950million multicurrency revolving credit facility, EUR1.215bn Term Loan A and EUR1.25bn Term Loan B, as well as EUR1bn senior secured PIK toggle notes. The term loans refinanced existing debt, and the PIK notes funded a distribution to sponsor Hellman & Friedman. The revolving credit facility will provide Verisure with additional flexibility and liquidity going forward.
Verisure is the leading provider of professionally monitored security services in Europe and Latin America, and a portfolio company of Hellman & Friedman.
"The successful issuance demonstrates the continued
strength and adaptability of the European high yield
market"
Brad
Weyland
Partner
Brad Weyland, high yield partner at A&O Shearman, commented: "This is the first time in Europe we have seen public high yield bonds issued by a minority holder of a recently listed private equity portfolio company. The transaction creates a potential template for use in future private equity exits, with public PIK notes providing more covenant flexibility than might be obtained in the private credit market and more certainty than margin loans (which would typically contain share price triggers). The successful issuance demonstrates the continued strength and adaptability of the European high yield market, as well as investor confidence in Verisure's business and strategy."
"We're proud to have helped achieve a balanced solution
that supports Verisure's growth trajectory..."
Nicholas
Clark
Partner
Nicholas Clark, global co-head of debt finance at A&O Shearman, said: "Verisure's post-IPO financing showcases how thoughtful structuring and disciplined execution can deliver for all stakeholders. Coordinating across 15 banks to refinance the capital structure and complete a concurrent public Holdco PIK issuance required tight alignment, market judgment, and speed. We're proud to have helped achieve a balanced solution that supports Verisure's growth trajectory and provides the sponsor with flexibility and certainty, all while preserving the momentum of a landmark IPO."
The A&O Shearman team was led by leveraged finance partners Nicholas Clark and Alice Smith, and high yield partner Brad Weyland, counsel Alex Charles and senior associates Odysseas Theofanis, Sophie Buchanan-Brown and Kiddist Forsythe, with support from associates Majd Atalla, Adam Harwood, Chantelle Fard, Swati Lal, Nishant Prasad, Shruti Sethi, Mubashshir Sarshar, and Camille Tournie, and trainees Hannah Gaffney and Jessica Earlam.