Polish DTH and telecoms group Cyfrowy Polsat (WSE:CPS) has launched a bond issue to raise up to PLN1bn (US$265m).
In January, shareholders approved the note programme, which is part of a larger refinancing effort to improve the profile of Cyfrowy…
Polish DTH and telecoms group Cyfrowy Polsat (WSE:CPS) has launched a bond issue to raise up to PLN1bn (US$265m).
In January, shareholders approved the note programme, which is part of a larger refinancing effort to improve the profile of Cyfrowy Polsat’s PLN13bn (US$3.5bn) debt pile. The notes will be listed on Catalyst, the Warsaw Stock Exchange’s debt market.
Some of the debt could be bought by the European Bank for Reconstruction and Development (EBRD), with which Cyfrowy Polsat signed a framework agreement with on 29 June. The DTH operator signed up to the EBRD’s designated performance requirements and anti-corruption guidelines, which the development bank requires before it can invest.
On 25 June Cyfrowy Polsat said it had begun negotiating with financial institutions to refinance debt under the senior facilities agreement it entered in April 2014, and subsidiary Polkomtel’s senior facilities agreement dating back to June 2013.
It also said it was in discussions to refinance senior notes due 2020 issued by Eileme 2 AB, through which Cyfrowy Polsat indirectly owns Polkomtel.
In April, CFO Tomasz Szelag said it was considering replacing high-yield bonds with debt reflecting current market terms, which may include zloty-denominated loan and domestic bonds.
“Our main target is to simplify the debt structure as well as to optimise its terms and reduce the debt servicing costs, thus giving the group more flexibility in doing business and creating favourable conditions for its future development,” Szelag said.
Trigon Brokerage House was mandated to conduct market analysis and consultations.
When Cyfrowy Polsat’s investors approved the bond issue in January, the agreement stipulated that new bonds had to be issued before 15 July this year, and redeemed no later than 31 December 2022.
The group has been gradually refinancing debt since completing the US$2bn Cyfrowy Polsat/Polkomtel merger in May 2014.
Cyfrowy Polsat also announced that its absorption of wholly-owned internet TV subsdiary Redefine has completed after being ratified by the District Court for the Capital City of Warsaw. The merger is designed to streamline the company’s structure.
