Pace, the UK-based set-top box manufacturer, has secured a US$450m financing package to support its proposed US$475m acquisition of US broadband services provider 2Wire.
The facility comprises a US$300m term loan and US$150m multicurrency revolving…
Pace, the UK-based set-top box manufacturer, has secured a US$450m financing package to support its proposed US$475m acquisition of US broadband services provider 2Wire.
The facility comprises a US$300m term loan and US$150m multicurrency revolving credit facility via HSBC and RBS. As part of the transaction, Pace has cancelled its existing £35m revolver with RBS.
Pace made its offer to buy privately-held 2Wire in late July as it seeks to expand beyond its core cable and satellite markets and into the telco sector. 2Wire has established relationships with a number of large US carriers including AT&T. The acquisition has already been approved by the Pace and 2Wire boards as well as a consortium representing the majority of the latter’s shareholders, AT&T, Alcatel-Lucent, Telmex and Oak Investments. However, the deal still requires both regulatory consents and Pace shareholder approval at a general meeting that is due to take place in the next couple of weeks.
Evercore Partners is acting as Pace’s financial adviser on the acquisition. JPMorgan Cazenove and RBS Hoare Govett are its corporate brokers.
