Dutch cableco Ziggo has set the interest rate and call premiums for its new 2024 notes, to be used to help fund Liberty Global’s (LGI’s) planned €4.9bn (US$6.7bn) takeover.
John Malone’s LGI is offering the 2024 notes to Ziggo bondholders via an…
Dutch cableco Ziggo has set the interest rate and call premiums for its new 2024 notes, to be used to help fund Liberty Global’s (LGI’s) planned €4.9bn (US$6.7bn) takeover.
John Malone’s LGI is offering the 2024 notes to Ziggo bondholders via an exchange offer. As previously reported, Ziggo has offered to exchange up to €934m (US$1.27bn) of its €1.2bn (1.64bn) 8% senior notes due 2018 into an equal amount of new notes due the same year.
If the takeover is completed by the agreed deadline, the new 2018 notes will be automatically exchanged into an equal amount of senior 2024 notes, to be issued by LGI subsidiary LGE Holdco. If the takeover doesn’t close on time, the new 2018 notes will be exchanged back into the original ones.
The new 2024 notes, reported to be a 10-year non-call five (10NC5) high-yield bond, will have a 7.125% per annum interest rate, Ziggo said in a statement. Call premiums will be 103.563% from 15 May 2019, 102.375% from 15 May 2020, 101.188% from 15 May 2021 and 100% from 15 May 2022. Before 15 May 2017, up to 40% of the 2024 notes may be redeemed at 107.125%.
If bondholders agree to the exchange offer before the 7 February deadline, they are eligible to receive an early premium of €40 per €1,000 of validly tendered and accepted notes.
Credit Suisse is acting as the dealer manager and structuring adviser on this exchange offer
As reported yesterday, Ziggo also intends to use €3.3bn (US$4.46bn) in term loan facilities and a €650m (US$889.1m) revolving credit facility to help fund the takeover.
LGI and Ziggo announced the planned takeover, which values the Dutch cableco at about €10bn (US$13.7bn), on 27 January. The Europe-focussed cable giant has already built a 28.5% in Ziggo.
