UK cableco Virgin Media has announced the pricing of its 10-year £957m senior secured notes. The private placement is led by Deutsche Bank and BNP Paribas.
As reported yesterday, the proceeds will be used to make an early repayment of a part of an…
UK cableco Virgin Media has announced the pricing of its 10-year £957m senior secured notes. The private placement is led by Deutsche Bank and BNP Paribas.
As reported yesterday, the proceeds will be used to make an early repayment of a part of an existing senior credit facility. Virgin Media will now be able to pay some £533m of its A Tranche, removing amortisation payments between 2011 and 2014, and partially repay its B Tranche due in 2015.
The notes will rank pari passu with the company’s senior credit facility and its existing senior secured notes due 2018 and, generally feature the same guarantees and security applicable to the senior credit facility and existing senior secured notes due 2018, Virgin Media stated.
The US$500m tranche will carry an interest of 5.25% per year, and the £650m tranche a rate of 5.50% per year. The interest on both portions will be payable in cash semi-annually in arrears starting on 15 July 2011.
The issue price of the dollar denominated notes is 99.482% of the principal amount and the issue price of the sterling denominated notes is 99.108% of the principal amount. The net proceeds from the offering, taking into account fees and expenses, are estimated to be approximately £940m, based on the exchange rate on 18 February 2011.
The transaction is expected take place on 3 March 2011, assuming that all appropriate conditions are met. Virgin Media said it expects to issue a paydown notice to its lenders under the senior credit facility after closing, with the paydown of the A Tranche expected to be made on or around 11 March 2011, and the paydown of the B Tranche expected to be made on or around 17 March 2011.
The notes, which mature on 15 January 2021, will be issued by Virgin Media Secured Finance, a wholly-owned subsidiary of Virgin Media.
