HONG KONG, July 23 Private equity-backed Taiwan
cable television operator China Network Systems Co (CNS) is
raising a loan of NT$40 billion ($1.34 billion) to restructure
its debt ahead of a proposed Singapore IPO, Basis Point reported
on Tuesday, citing sources.
Citigroup has fully underwritten the new loan to
refinance a similar sized deal completed in 2012 and is putting
together a bank group for the financing, reported Basis Point, a
Thomson Reuters publication.
DBS Bank and Standard Chartered Bank
have joined with underwriting commitments, the report said.
MBK Partners, which owns a majority stake in CNS, has hired
banks for a business trust IPO worth about $1 billion after
Taiwan's regulators blocked its sale of the company, Reuters
reported last week.
The loan could carry a tenor of five to seven years, and
could have higher pricing than the NT$40.2 billion seven-year
loan it will refinance, Basis Point reported.
The new loan could launch to syndication as early as next
week. The IPO is expected for the second half of the year.
MBK, which acquired 60 percent of CNS for $1.5 billion in
2006, has been blocked by Taiwan's regulators from exiting the
company through an agreed $2.4 billion sale to a group led by
Want Want China Holdings. MBK agreed to sell CNS to
the Want Want-led group in October 2010.
Earlier this year, Macquarie International Infrastructure
Fund listed Taiwan Broadband Communications Co as a business
trust in Singapore.