LONDON, Oct 18 (IFR) - Ziggo's chief financial officer has
said that Dutch cable firm is aiming to refinance its 2017 and
2018 bonds "in the near future," while speaking on a conference
call with investors today.
The 2017 notes are senior secured and carry a 6.125% coupon,
while the 2018 notes are senior unsecured and carry an 8%
coupon. This is much higher than the rest of Ziggo's debt, which
comprises a 2020 senior secured note with a 3.625% coupon and a
senior credit facility paying 175bp over Eurbior.
Ziggo has been in the spotlight this week after the company
confirmed it had rejected a takeover offer from John Malone's
Liberty Global. Ziggo has a net leverage ratio of 3.55x Ebitda,
lower than the 4 to 5x target leverage Liberty has for its
Ziggo's CFO Bert Groenewegen said that the company could
realise a 175bp to 200bp lower coupon if it refinanced the notes
at present market conditions. The bond's restrictive covenants
provide an additional incentive to refinance the paper.
"Quite likely in the near future we will refinance both
instruments not only to save on interest rates but remove the
dividend restrictions included on the unsecured notes," said
The 2017 notes are callable on November 15 at a call premium
of 3.0625%, while the 2018 notes are callable at a 4% premium as
of May 15 2014.
(Reporting by Robert Smith; editing by Alex Chambers)