Ropes & Gray has provided legal counsel to Virgin Media O2 regarding the debt financing arrangements for a new business-to-business (B2B) company. This venture involves merging Virgin Media O2’s direct B2B operations with Daisy Group, resulting in a joint ownership structure where Virgin Media O2 holds 70% and Daisy Group 30%.
The merger aims to establish a significant presence in the UK’s business communications and IT sector. It promises UK businesses access to a wide array of digital-first connectivity solutions and managed services, supported by Virgin Media O2’s advanced fixed and mobile infrastructure alongside Daisy Group’s modern IT systems.
The financial structuring of this transaction includes approximately £1.25 billion in loan financing. Virgin Media O2 plans to secure financing at its cost of debt upon closing, which will facilitate the repayment of existing Daisy facilities through a secured intercompany loan. Additionally, another secured intercompany loan will be provided by Virgin Media O2 as part of the transaction’s completion mechanics.
The Ropes & Gray team leading this initiative was headed by finance partners Alex Robb and Rob Haak, with assistance from Hoey Lee, Kwame Adzatia, Edward Olsen, and Talia Menzies.
