Spanish cable operator Cableuropa (ONO) has completed its offering of E460m senior notes due 2019 through special purpose vehicle ONO Finance II.
Deutsche Bank, BoAML, BNPP, Credit Agricole, Credit Suisse and JP Morgan were joint coordinators for the…
Spanish cable operator Cableuropa (ONO) has completed its offering of E460m senior notes due 2019 through special purpose vehicle ONO Finance II.
Deutsche Bank, BoAML, BNPP, Credit Agricole, Credit Suisse and JP Morgan were joint coordinators for the transaction.
The issue, launched on 20 January, comprises E295m of 11.125% notes and US$225m of 10.875% notes.
They are both guaranteed on a senior subordinated basis by Cableuropa, and on a senior basis by direct parent group ONO Midco.
“ONO Finance II plc has on-lent the gross proceeds of the offering to Cableuropa, which will them to repay or otherwise redeem certain existing indebtedness,” ONO said in a statement.
According to Carlos Sagasta, general finance director of Ono, “This issue represents a significant milestone in the refinancing of Ono and opens up a number of options for us going forward. It had been ten years since we went to the US market, and the response was very positive”.
The company will re-pay E180m worth of 10.5% senior notes and E270m worth of 8% senior notes that are both due in 2014. It also seeks to use the proceeds of the issue to repay a E10m loan upon maturity in May this year.
Although the bond issuance will have positive implications for its refinancing risk profile, senior Moody’s analyst Ivan Palacios cautioned that “ONO still faces material refinancing challenges in 2013”.
ONO’s high-yield is graded below Baa3 by Moody’s, which expects the company’s refinancing needs in 2013 to be approximately E2.3bn.
The company announced the successful completion of its E700m bond issue on 22 October. These notes were priced at 8.875% and are due December 2018.
At the time, ONO said its completion marked a further step in the group’s “refinancing roadmap that intends to address the company’s debt maturities and diversify its financing sources”.
The group posted revenues of approximately E1.5bn and EBITDA of E730m for FY 2009.
