Cable & Wireless has issued an announcement outlining the terms of its demerger, including plans to issue US$500m worth of bonds.
The company confirmed that the demerger of Cable & Wireless Worldwide (CWW) and Cable & Wireless Communications is on track…
Cable & Wireless has issued an announcement outlining the terms of its demerger, including plans to issue US$500m worth of bonds.
The company confirmed that the demerger of Cable & Wireless Worldwide (CWW) and Cable & Wireless Communications is on track and due to conclude on March 26, when shares of CWW will be listed on the London Stock Exchange.
C&W is also planning to inject £30m into its UK pension scheme, which is less than expected and has resulted in a boost to the firm’s share price.
The company has forecast EBITDA of US$880m-US$900m for C&W Communications and EBITDA of £430m for CWW for 2009/10.
The financing for the demerger is in place with a £230m convertible bond issued in November 2009 and £300m of credit facilities. Further to that C&W is to issue US$500m of senior secured notes due 2017, the proceeds of which will be used to refinance existing debt and to fund working capital.
Shareholders will be asked to approve the merger at a meeting on February 25.
Rothschild and Gleacher Shacklock are acting as joint sponsors and financial advisers to C&W, while Allen & Overy is acting as legal adviser.
Barclays Capital, BNP Paribas, JPMorgan, Lloyds TSB and RBS are all acting as financial advisers to the demerger.
