Poland’s largest telecoms and media company Cyfrowy Polsat has completed a major refinancing aimed at saving an annual PLN400m (US$99.22m) in interest costs. Cyfrowy signed a PLN12.5bn (US$3.32bn) facility agreement last September with a syndicate of more than 20 banks to refinance debt.
Poland’s largest telecoms and media company Cyfrowy Polsat (WSE:CPS) has completed a major refinancing aimed at saving an annual PLN400m (US$99.22m) in interest costs.
Last September, Cyfrowy signed a PLN12.5bn (US$3.32bn) facility agreement with a syndicate of more than 20 banks to refinance debt at both the parent company and its mobile subsidiary Polkomtel.
Cyfrowy noted in a statement today that the facility agreement consists of a term loan of up to PLN11.5bn (US$2.85bn) and a revolving credit facility of up to PLN1bn (US$248m). This, together with PLN1bn of unsecured bonds issued in July 2015, will lead to the PLN400m per annum in interest savings, the company said.
Cyfrowy said it had completed the refinancing with the repayment of €542.5m (US$571.3m) and US$500m senior notes issued by subsidiary Eileme 2, the entity via which it indirectly owns Polkomtel.
In connection with the repayment of the Eileme notes, Cyfrowy said it has increased the Polish zloty facility inked last September by a further PLN4.8bn (US$1.19bn).
The group’s finance head, Tomasz Szelag, said the refinancing gives it greater flexibility and security and a simpler debt structure.
The new facilities mature on 21 September 2020 and bear interest at a variable rate equal to WIBOR plus a margin dependant of Cyfrowy’s net debt/EBITDA ratio.
The global coordinators on the PLN12.5bn facility agreement were PKO Bank Polski, Bank Zachodni WBK, ING and Société Générale.
Trigon Dom Maklerski is the financial adviser and coordinator for the refinancing, while Greenberg Traurig is providing legal counsel.