Romanian pay-TV provider RCS/RDS has pulled its planned US$200m bond issue, citing difficult market conditions.
Citigroup had been mandated sole bookrunning manager on the issue, with proceeds earmarked for refinancing of existing debt and general…
Romanian pay-TV provider RCS/RDS has pulled its planned US$200m bond issue, citing difficult market conditions.
Citigroup had been mandated sole bookrunning manager on the issue, with proceeds earmarked for refinancing of existing debt and general corporate purposes.
The proposed dollar-denominated notes were due to mature in 2017 and carry an interest of between 9.75% and 10%. However, it is that interest rate that is believed to be the sticking point with potentials investors allegedly seeking a higher yield. Ratings agency Moody’s recently assigned RCS/RDS a Ba3 rating.
RCS/RDS is currently the leading provider of cable and DTH services in the country, however it has been facing increasing competition from local terrestrial rivals Romtelecom and UPC. The two companies are backed by large parents, in OTE and Liberty Global respectively, and this has given them the necessary funding to invest heavily in infrastructure upgrades and service improvements.
