Com Hem has priced its IPO at Skr44-62 (US$6.57-9.26) per share in a move that could value the Swedish cableco’s equity at as much as Sk12.44m (US$1.86bn).
The issue of new shares on 17 June would raise Skr6.24bn (US$932m) if its over-allotment option…
Com Hem has priced its IPO at Skr44-62 (US$6.57-9.26) per share in a move that could value the Swedish cableco’s equity at as much as Sk12.44m (US$1.86bn).
The issue of new shares on 17 June would raise Skr6.24bn (US$932m) if its over-allotment option is exercised in full.
Private equity owner BC Partners is not selling its own shares in the group but, if the IPO is priced in the middle of the range, the stake held by its NorCell holding company would be diluted to 47.8% through the issue of 207 million new shares, or 45.4% if the over-allotment option is used.
Proceeds from listing on the NASDAQ OMX Stockholm will help the cableco cut debt and increase its financial flexibility.
It is aiming for a net leverage of around 3.9x net debt/ LTM underlying EBITDA by 30 June 2014 if the green shoe is tapped, or 4.15x if it is not.
This will partly be achieved through redeeming senior PIK notes that are due to have Skr2.76bn (US$413.11m) outstanding as of 30 June, and 35% of senior notes that will have Skr2.61bn (US$3.90m) outstanding by then. It also aims to repay a senior credit facility that is set to have Skr6.23bn (US$931m) outstanding, and any remaining proceeds will be used for general corporate purposes.
The private equity firm bought the business in 2011 from fellow PE firms Carlyle and Providence for €1.7bn (US$2.3bn).
JP Morgan, Morgan Stanley and Nordea are joint global coordinators on the IPO, with Rothschild acting as financial adviser. Carnegie is also a joint bookrunner.
Settlement is expected on 23 June.
