Virgin Media is set to tap the bond markets once more, hiring Goldman Sachs and JPMorgan to manage a £500m issue.
BoA Merrill Lynch, Barclays Capital, BNP Paribas, Calyon, Citigroup, Credit Suisse, Deutsche Bank, GECC, HSBC, Lloyds TSB, RBS and UBS are…
Virgin Media is set to tap the bond markets once more, hiring Goldman Sachs and JPMorgan to manage a £500m issue.
BoA Merrill Lynch, Barclays Capital, BNP Paribas, Calyon, Citigroup, Credit Suisse, Deutsche Bank, GECC, HSBC, Lloyds TSB, RBS and UBS are also believed to be participating in the deal, which will feature pound, euro and dollar tranches, due 2018.
The bonds will be issued via Virgin Media Secured Finance and will rank pari passu with Virgin Media’s senior credit facility.
The proceeds of the offering will be used to prepay a portion of its outstanding A-A3 and B1-B6 tranches under its senior credit facility.
Fitch Ratings has assigned an expected rating of ‘BB+’ to the issue. “The new senior secured bonds will represent yet another step in Virgin Media’s plan to address its 2012 refinancing risk,” says Michelle De Angelis, senior director in Fitch’s leveraged finance team. “A total £2.7bn of senior secured loan facilities will currently fall due for repayment by 2012 and a further £300m in 2013, and the proceeds of the proposed £500m equivalent senior secured bond issuance will be used to partially pre-pay Virgin Media Investment Holdings’ senior secured loan facilities, thus extending and smoothing the company’s repayment profile.”
