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.
