£500m Virgin secured bond refinancing -
By Julian Clover
January 12, 2010 09.22 UK
Virgin Media has announced the offering of $1 billion in secured bonds, a move that is designed to place the refinancing of its main bank debt on a par with that of its existing credit line.
The notes, which will become due in 2018, will be made as a private placement on international markets.
The cablenet will gain a greater flexibility in its repayable against a debt burden of over £4bn.
Over the last 12 months Virgin Media has made a series of moves as part of its refinancing. In May the company announced a $1 billion equivalent senior notes issued at an interest rate of 9.50 a year, but in October was able to negotiate secured bonds at a lesser rate due to lower risk factors.
NASDAQ-quoted Virgin is currently close to a 52-week high of 17.14.