Poland's Cyfrowy Polsat in talks to refinance debt

WARSAW Wed Feb 26, 2014 3:55am EST

WARSAW Feb 26 (Reuters) - Poland's largest media group Cyfrowy Polsat started debt refinancing talks with lenders as part of its 6.2 billion zloty ($2 billion) buyout of the country's No.3 mobile operator Polkomtel, Cyfrowy said on Wednesday.

Polish billionaire Zygmunt Solorz-Zak, who controls Cyfrowy and Polkomtel, decided to merge them last year to ease their debt burden and create a company generating 10 billion zlotys in revenue.

The deal, to be completed by mid-2014, means that Cyfrowy takes on 10.2 billion zlotys of Polkomtel debt left over from Solorz-Zak's buyout of the mobile operator in 2011, raising the joint group's net debt to 3.1 times its core profit.

The media group declined to say which lenders it was talking to and said others may join the refinancing negotiations at a later date. ($1 = 3.0213 Polish zlotys) (Reporting by Adrian Krajewski; Editing by Erica Billingham)

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