| LONDON, March 28
LONDON, March 28 Liberty Global's Belgian cable
and mobile company Telenet has launched a
US$1.8bn-equivalent leveraged loan refinancing to reduce the
cost of its debt following a ratings upgrade, banking sources
Telenet’s corporate family and issue rating was upgraded by
Moody’s on March 27 to Ba3 from B1. It also received a ratings
upgrade from S&P on February 22 to BB- from B+.
Telenet is now looking to shave up to 50bp off of its loans
with a new €750m, March 2026 term loan AH, guided to pay
275bp-300bp over Euribor and a US$1bn, June 2025 term loan AI,
guided to pay 250bp-275bp over Libor.
Both are offered with a 0% floor at 99.75 OID.
They will refinance part of an existing €1.6bn term loan AE
and US$1.5bn term loan AF, due January 2025, raised in November
2016. That euro loan pays 325bp over Euribor with a 0% floor,
while the dollar pays 300bp over Libor, with a 0% floor.
The loans are offered with 101 soft-call for six months.
The size of the new loans could increase to refinance more
of the existing loans, depending on investor demand, the sources
Lenders have been asked to commit to the financing by March
31, with funding due on May 4 after soft call on the current
loans expires on May 3.
BNP Paribas is leading the euro tranche, alongside JP
Morgan, Deutsche Bank, Rabobank, RBC, NatWest Markets and
JP Morgan is leading the dollar tranche, alongside BNP
Paribas, Deutsche Bank, Rabobank, RBC, NatWest Markets and
The upgrade comes on an improved business profile and Ebitda
growth prospects following Telenet’s acquisition of Belgian
mobile firm BASE in February 2016 and the proposed acquisition
of SFR’s businesses in Belgium and Luxembourg, as well as a
moderate leverage profile and continued healthy free cash flow
generation, according to Moody’s.
(Editing by Christopher Mangham)