Dutch cableco Ziggo’s offer to exchange up to €934m (US$1.27bn) of senior notes due 2018 could reportedly see bondholders receive new 10-year, high-yield notes later in the year.
Ziggo is offering to exchange up to €934m of its €1.2bn…
Dutch cableco Ziggo’s offer to exchange up to €934m (US$1.27bn) of senior notes due 2018 could reportedly see bondholders receive new 10-year, high-yield notes later in the year.
Ziggo is offering to exchange up to €934m of its €1.2bn (US$1.64bn) 8% senior notes due 2018 into an equal amount of new 8% senior notes also due 2018, as part of Europe-focused cable giant Liberty Global’s (LGI) takeover package.
Bondholders who take up the exchange offer will have guaranteed allocations on a new 10-year, non-call five (10NC5) high-yield bond, Reuters reported citing unidentified sources. The coupon for this new bond is set to be determined next week, sources were cited as saying.
This new bond will reportedly be launched if and when the proposed €4.9bn (US$6.7bn) acquisition, which will see LGI acquire the 71.5% stake in Ziggo it does not already own, closes. Ziggo and LGI expect the deal to complete in the second half of this year, subject to regulatory clearance.
According to the report, the new 2018 notes would act as placeholders for the 10NC5 notes, but would remain in place if the takeover does not complete.
Credit Suisse is acting as the dealer manager and structuring adviser on the exchange offer.
Ziggo has also launched a tender offer to pay cash for its outstanding €750m (US$1.02bn) 3.625% senior secured notes due 2020 and requested amendments to the indenture governing the notes. At the same time, subsidiary Ziggo Finance intends to redeem or retire outstanding €150m (US$204.78m) 6.125% senior secured notes due 2017.
John Malone’s LGI and Ziggo announced the planned takeover, which values the Dutch cableco at about €10bn (US$13.7bn), on Monday.
