Arqiva, the UK-based broadcast transmission infrastructure provider, is looking at refinancing approximately £3.4bn (US$5.3bn) of its debt.
The debt stems from 2007, when Arqiva’s then majority owner Macquarie completed the transformational…
Arqiva, the UK-based broadcast transmission infrastructure provider, is looking at refinancing approximately £3.4bn (US$5.3bn) of its debt.
The debt stems from 2007, when Arqiva’s then majority owner Macquarie completed the transformational acquisition of National Grid Wireless for £2.5bn. In order to fund that deal as well as to refinance existing debt in Arqiva, Macquarie secured a £3.4bn credit facility.
The financing comprised a dual tranche £2.15bn senior loan split between a £1.55bn seven-year term loan A1 and a £600m 7.5 year A2 tranche, a £700m 7-year cap-ex line, £475m in junior debt and a £75m revolver. Barclays, Dresdner Kleinwort (now part of Commerzbank), HSBC and RBS were the mandated lead arrangers on the deal.
An Arqiva spokesperson told SatelliteFinance: “We are well prepared to meet our refinancing commitments and have received strong interest in Arqiva as a proposition. With our current facilities not expiring until 2014 we are in a position to explore all options and can confirm that we have begun preliminary discussions with interested parties.”
Arqiva provides much of the infrastructure behind television, radio, satellite and wireless communications in the UK and has a significant presence in Ireland, mainland Europe and the USA. Customers include major UK terrestrial and satellite broadcasters BBC, ITV and BSkyB as well as the UK’s five mobile network operators, the country’s emergency services and a number of independent radio groups.
In July 2009, Macquarie sold off a substantial part of its holding and moved the remaining amount to its investment fund. Canada Pension Plan Investment Board (CPPIB) now owns a 48% holding and the Macquarie European Infrastructure Fund 2 (MEIF 2) has 25%. Various other Macquarie-managed funds account for about 7%, Industry Funds Management (IFM) has almost 15% and Motor Trades Association of Australia (MTAA) holds 5%.
