Belgian cableco Telenet (Euronext: TNET) has issued €530m (US$577m) of 4.875% senior secured, fixed rate notes due 2027.
Proceeds will be on lent to subsidiary Telenet International Finance as an additional facility under Telenet’s existing senior…
Belgian cableco Telenet (Euronext: TNET) has issued €530m (US$577m) of 4.875% senior secured, fixed rate notes due 2027.
Proceeds will be on lent to subsidiary Telenet International Finance as an additional facility under Telenet’s existing senior secured credit facility, the Liberty Global-owned company said in a statement.
Telenet International Finance plans to use the funds to prepay Facility M under the existing credit facility. The issuer, Telenet Finance VI Luxembourg, will then use the proceeds of this prepayment to redeem €500m of senior secured notes due 2020. The notes are the obligation of the issuer alone and not guaranteed by the Telenet Group.
Goldman Sachs, JP Morgan, Royal Bank of Canada and Societe Generale acted as bookrunners for the new issue.
Telenet said the “leverage-neutral” transaction enables it to extend the average tenor of its debt “at attractive market conditions”.
Telenet said its net leverage ratio as of 31 March 2015 was 3.7x, not taking into account any implications from its acquisition of local mobile operator Base from Dutch telco KPN.
Standard & Poor’s and Moody’s have rated Telenet’s debt B+ and B1 respectively.
Telenet agreed in April to buy Base for €1.325bn in cash. At the time, the cableco said it expected to spend some €240m over the next few years to upgrade the capacity and quality of Base’s network and support systems, and integrate it with Telenet.
