Deutsche Bank and Bank of America are managing Spanish cable operator ONO’s plans to issue E460m worth of senior notes due in 2019, reported Bloomberg.
ONO declined to comment on the plans, but analysts at ratings agency Moody’s say it is seeking to use…
Deutsche Bank and Bank of America are managing Spanish cable operator ONO’s plans to issue E460m worth of senior notes due in 2019, reported Bloomberg.
ONO declined to comment on the plans, but analysts at ratings agency Moody’s say it is seeking to use the proceeds of the issuance to repay debt.
The group aims to pre-pay E180m worth of 10.5% senior notes and E270m worth of 8% senior notes that are both due in 2014, according to an investors note distributed today by Moody’s.
ONO also plans to use the proceeds to repay a E10m loan upon maturity in May 2011, the note adds.
Senior Moody’s analyst Ivan Palacios said: “The proposed bond issuance is another step in the company’s efforts to address the debt refinancing wall in 2013-14, and, if successfully completed, will have positive implications for ONO’s refinancing risk profile.
“However, Moody’s also notes that ONO still faces material refinancing challenges in 2013.”
Moody’s, which has graded ONO’s high-yield debt below Baa3, estimates the company’s refinancing needs in 2013 will be around E2.3bn.
On 22 October 2010, ONO announced the successful completion of its E700m bond issue, which was priced with an 8.875% interest rate and hold a December 2018 maturity.
At the time, ONO said its completion marked a further step in the group’s “refinancing roadmap that intends to address the company’s debt maturities and diversify its financing sources”.
Deutsche Bank, BoA Merrill Lynch, BNP Paribas, Credit Agricole, Societe Generale and Santander were the top-tier banks for this E700m bond.
ONO reported revenues of approximately E1.5bn and EBITDA of E730m for FY 2009, Moody’s added.
