Bain Capital, the private equity firm formerly led by US presidential hopeful Mitt Romney, has landed a deal with Spanish telco Telefonica to take its Atento call centre arm for €1bn.
Telefonica had been looking at a sale in 2007 and last year pulled an IPO, in what was a bid to de-leverage as its credit rating bows under the weight of a €58bn debt pile.
The Madrid-headquartered telco is also preparing to spin off its German O2 subsidiary and is mulling listings in Latin America to reduce liabilities and maintain its favourable credit rating.
Atento, which has agreed to provide services to Telefonica for the next nine years, turned over €1.8bn last year and made operating income before depreciation and amortisation of €161m.
Bain was advanced a €110m vendor loan note to help the private equity firm finance the deal, amid a scarcity of debt in Spain as lenders remain wary of the country's macro standing.