Poland’s main satellite TV provider Cyfrowy Polsat has secured a PLN3bn (US$1.04bn) five-year senior secured loan for the acquisition of Telewizja (TV) Polsat, its parent company.
The bookrunners for the facility are Citigroup, Credit Agricole and RBS,…
Poland’s main satellite TV provider Cyfrowy Polsat has secured a PLN3bn (US$1.04bn) five-year senior secured loan for the acquisition of Telewizja (TV) Polsat, its parent company.
The bookrunners for the facility are Citigroup, Credit Agricole and RBS, SatelliteFinance understands. The financing is split into a PLN1.4bn (US$483.6m) long-term loan, a PLN1.4bn bridge loan, and a PLN200m (US$69m) revolver.
A source close to the deal told SatelliteFinance that the appetite for the loan, which has recently been launched into syndication, was strong. It is secured against the company’s assets and is expected to be refinanced in part or whole in 2011.
Back in December, Cyfrowy Polsat said it would buy TV Polsat for approximately PLN3.75bn (US$1.3bn) in a cash and share deal.
Cyfrowy will pay PLN2.6bn (US$900m) in cash and the rest will be in the form of 80 million shares valued at PLN14.37 (US$5) each. The company said it would assume all assets and liabilities of TV Polsat, including net cash of PLN150m (US$52m). The acquisition, which values TV Polsat at 11.8 times 2010 EBIDTA, is expected to close in March 2011.
TV Polsat, Poland’s second largest television channel, was founded in 1992 by Polish billionaire Zygmunt Solorz-Zak. Along with associate Hieronim Ruta, Solorz-Zak owned 100% of TV Polsat both directly and through investment vehicles Karswell and Sensor Overseas. The two men also own a majority stake (65.2%) in Cyfrowy via their investment vehicle Polaris Finance with the rest being held by public shareholders.
While Polaris’ holding in Cyfrowy will be diluted to 50.2% following the sale, Solorz-Zak and Ruta actually increase their ownership due to their 100% control of TV Polsat.
The 80 million Cyfrowy shares that are part of the transaction will give the pair an extra 23% in equity, meaning their holding will now amount to 73.2%. The other 26.8% will be owned by public shareholders.
…eyes DTH rival
Local reports have suggested that Cyfrowy Polsat may consolidate further by buying Cyfra+, another local digital satellite platform, owned and operated by French media company Canal+.
Polsat, though, may face competition with Deutsche Telekom rumoured to also be eyeing Cyfra+. After settling a dispute with Vivendi which allowed the German incumbent to take full control of Polish mobile operator PTC, Deutsche Telekom is now reportedly looking to launch DTH and cable services in Poland in order to offer bundle packages, a popular trend in several Central and Eastern European countries.
Poland is home to three DTH platforms: Cyfrowy Polsat, Cyfra+, and n.
