Spanish cablenet ONO has launched a multi-million refinancing plan that involves a commitment of €200 million by existing shareholders. An initial €125m will be injected immediately as deeply subordinated debt with the remaining €75m subject to liquidity tests.
The partial refinancing of the company’s €3,600 million senior facility agreement will solve ONO’s short term financial issues while allowing the operator to move through the current economic environment. ONO has been hit by the combination of the financial crisis, which has had a significant effect on what was once one of Europe’s fastest growing economies, and the launch of competing IPTV networks such as Imagenio and Jazztel.
The plan will be presented at a lender meeting in Madrid on January 19 with a proposal to schedule the debt through until June 2013. ONO is also hoping its lenders will participate in a new loan or bond scheme that will be used to refinancing existing debt within the €3,600 facility.
“This plan provides ONO with enhanced flexibility to operate its business in difficult market conditions as we look to drive the business forward and continue to grow,” Jonathan Cumming, chief financial officer, ONO said in a statement. “The capital provided by our shareholders is an important vote of confidence in the value of this business and ensures that the liquidity position of ONO is not impacted by the refinancing in the near term. This is the first in a series of transactions which we intend to undertake to diversify our sources of financing and term out our debt maturities.”
The banks involved in the refinancing represent 44% of the existing senior facility. ONO has been advised by Goldman Sachs.
