A&O Shearman represents banks on groundbreaking post-IPO financings

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.”

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.