LONDON, Feb 5 (IFR) - Ziggo has set the interest on its euro
2024 exchange notes at 7.125%, according to a banker on the
deal, which Liberty Global is offering to Ziggo bondholders as
part of its acquisition debt of the Dutch cable firm.
The notes are the unsecured financing of the acquisition and
take the form of an exchange offer to holders of Ziggo's 8%
EUR1.2bn 2018 senior notes, rather than a new issue. The holders
have been offered the chance to exchange into EUR934m of new 8%
senior notes also due in 2018.
If they agree, bondholders will receive a guaranteed
allocation on a new 10-year non-call five (10NC5) high-yield
bond, with a May 2024 maturity. This 10NC5 bond will only come
into existence if and when Liberty's acquisition of Ziggo is
The coupon on the new 2024 will be semi-annual in arrears on
May 15 and November 15. The call premiums of the new 2024 will
be 103.563% from May 15 2019, 102.375% from May 15 2020,
101.188% from May 2021, and at par from May 15 2022.
The bond will also have a 40% equity claw at 107.125% before
May 15 2017.
The early bird deadline for bondholders to respond by is
February 7, at 5:00pm New York time. If bondholders agree to the
exchange before this deadline, they receive as an early
participation premium a cash payment of EUR40 for every EUR1,000
Credit Suisse is the dealer manager and structuring adviser
on the exchange.