The Romanian cable and DTH operator RCS/RDS is to issue bonds worth E200m on foreign markets in order to improve the company’s liquidity.
Citigroup is sole lead manager on the issue.
The seven-year bonds are expected to carry a coupon of more than 8% and…
The Romanian cable and DTH operator RCS/RDS is to issue bonds worth E200m on foreign markets in order to improve the company’s liquidity.
Citigroup is sole lead manager on the issue.
The seven-year bonds are expected to carry a coupon of more than 8% and could price to yield as much as 10%. Citigroup will not be required to buy the bonds if they are not subscribed to by investors.
Moody’s has assigned the bond and the company, a Ba3 rating based on the company’s solid market position in Romania and Hungary, and the performance of its satellite TV units across Central and Eastern Europe.
RCS/RDS is the leading triple and quadruple play provider in Romania, and the number one satellite TV provider in Slovakia, the Czech Republic and Croatia.
Moody’s also stressed that the company has maintained impressive control of its leverage level, which despite strong growth has remained at a ratio of 2.5 x Debt to EBITDA.
The company expects to become cash flow positive in 2010, but until that occurs its general rating will remain constrained.
