French television network operator TéléDiffusion de France (TDF) has won approval from its lenders to renegotiate its debt structure. The bulk of its E4.35bn debt will now mature in five years after 90% of the lenders accepted the extension of…
French television network operator TéléDiffusion de France (TDF) has won approval from its lenders to renegotiate its debt structure.
The bulk of its E4.35bn debt will now mature in five years after 90% of the lenders accepted the extension of maturity from 2014 and 2015 to 2016.
The debt package includes a new tranche of E250m raised following the repayment of E405m in debt, which had been used to buy Deutsche Telekom’s Media & Broadcast in 2007. The rest of the debt settlement was made with the company’s cash.
The new debt pays 400bp over Euribor, among which 100bp are PIK, compared to 175bp previously.
Rothschild is advising on the debt reorganisation, while BNP Paribas and Goldman Sachs are bookrunners.
In a statement, the company said: “This amended and stabilised financial structure will provide TDF with greater flexibility and time to support its development and ambitions, in particular its ‘TDF 3.0’ project, which includes Pay TV, connected DTT, digital radio, media services and 4G rollout.”
A source at TDF said: “The company has now four years to develop and concentrate on its operations, and maybe prepare an IPO, but this is more a middle-term objective when results have improved and market conditions are favourable.”
About a month ago, it was speculated that TDF may be floated in order to allow the company to cut its debt load.
But at the time, a source told SatelliteFinance that before an IPO could be envisaged, the company actually needed to reduce the size of its debt burden. It was also reported that other options could include a sale to a strategic buyer or a recapitalisation.
US private equity firm TPG holds 42% of TDF, while sovereign fund FSI controls 24%, the private equity arm of French insurance group AXA 18%, and Charterhouse Capital Partners 14%.
TDF, which provides radio and TV transmission services using its satellite, internet and tower operations, is valued by its owners at as much as E8.5bn, or about 12x EBIDTA. The company is present in France, Germany, Finland, Hungary, Poland, Spain, Estonia and Monaco.
In June, it sold its Dutch business Alticom Holdings to Infracapital Partners.
Infracapital hired Macquarie Capital Europe as financial adviser, DeBrauw Blackstone Westbroek acted as legal advisers and Ernst & Young as accounting and tax adviser. DexiaCrédit Local and ING reportedly provided a E60m nine-year term loan, with pricing at around 325bp–350bp.
TDF was financially advised by Leonardo & Co., while DLA Piper provided legal advice and PricewaterhouseCoopers acted as accounting and tax adviser, and for market review.
