Spanish cable operator Ono is planning to make an offering of US$400m of senior secured notes due 2018 in order to repay existing debt.
The bond will be issued by a special purchase independent orphan vehicle, Nara Cable Funding Limited, Ono said in a…
Spanish cable operator Ono is planning to make an offering of US$400m of senior secured notes due 2018 in order to repay existing debt.
The bond will be issued by a special purchase independent orphan vehicle, Nara Cable Funding Limited, Ono said in a statement.
Nara Cable will then lend the gross proceeds of the offering to Cableuropa (Ono), which will then form a new tranche of Ono’s senior facility. The gross proceeds of this loan will be used to repay indebtedness under Ono’s senior facility.
Ono added that the new tranche would be secured on a pari passu basis with other loans under the senior facility.
Ratings agency Fitch gave the bond issue an expected rating of BB-.
Fitch said that it viewed the transaction positively with respect to the company’s progress in “addressing the overall profile of its borrowings”.
“Subject to a marginal increase in ongoing interest costs, the transaction will be leverage neutral and improve the group’s overall maturity profile,” Fitch said.
The lead bookrunners are BNP Paribas, Deutsche Bank and JP Morgan.
