Bonds of Telenet Group Holding NV (TNET)
fell a many in roughly a year as a Belgian wire TV operator
said it will take on 700 million euros ($863 million) of debt to
help account a share buyback.
Telenet’s 500 million euros of 6.375 percent high-yield
notes due 2020 forsaken 1.4 cents to 104.1 cents on a euro at
2:30 p.m. in London, a biggest one-day decrease given Sept. 22,
according to information gathered by Bloomberg. The cost tumble pushed
the notes’ produce to a one-week high of 5.75 percent.
The wire user tranquil by Liberty Global Inc. said
it’s “taking advantage of stream auspicious credit market
conditions” to lift 700 million euros from a two-part sale of
bonds due in 10 and 12 years. Telenet intends to boost the
ratio of a net debt to benefit to about 4.5 times, a higher
end of a precedence aim range.
“It’s a good time to emanate aloft peculiarity high-yield
debt, generally in a wire zone and from northern Europe,”
said Stuart Stanley, a account manager during Invesco Asset Management
Ltd. in London who oversees $3 billion of high-yield bonds. “So
they should have small problem notwithstanding a deduction being
used for shareholders, that is always a negative.”
Telenet is rated Ba3 by Moody’s Investors Service, three
levels next investment-grade status. Yields on junk-rated bonds
have forsaken 50 basement points this month to 7.51 percent, close
to a four-month low of 7.49 percent on Aug. 9, according to Bank
of America Merrill Lynch’s Euro Non-Financial High-Yield index.
JPMorgan Chase Co., BNP Paribas SA and Goldman Sachs
Group Inc. are handling Telenet’s sale of comparison cumulative notes,
which includes 400 million euros to 500 million euros of bonds
due 2022, callable after 5 years and agreeable about 6.375
percent. It will also emanate 200 million euros to 300 million
euros of 12-year records that are callable after 6 years,
according to a chairman with believe of a transaction.
The association forsaken skeleton to lift an homogeneous 200
million euros from dollar debt markets, pronounced a person, who
asked not to be identified given a information is private.
It final tapped bond markets in Jun 2011, when it released 400
million euros of floating-rate notes, Bloomberg information show.
The new holds are partial of Mechelen, Belgium-based Telenet’s
plan to change a collateral structure. The wire association skeleton to
buy behind as most as 724 million euros of a possess shares through
a intentional proposal for as most as 18 percent of a outstanding
stock. Future division payments will include especially of share
repurchases, a association pronounced in a matter today.
Fitch Ratings downgraded Telenet’s long-term issuer default
rating by dual levels to B+ after a company’s announcement,
citing a increasing leverage. The wire operator’s outstanding
secured debt was cut to BB from BB+.
“While Telenet has consistently demonstrated clever pre-
distribution giveaway money upsurge era and an ability to
deleverage, a turn and debt-funded inlet of distributions
suggests a eagerness to say aloft precedence than
previously expected by Fitch,” analysts led by Stuart Reid
in London wrote in a report.
Telenet owes bondholders 1.3 billion euros, Bloomberg data
show. The company’s second-quarter benefit before interest,
tax, debasement and amortization climbed 8.1 percent to 194.4
million euros from a year earlier, violence analysts’ forecasts.
The company’s shares rose as most as 3.5 percent in
Brussels, a biggest intraday commission benefit given May 16, and
traded during 35.36 euros, or 2.3 percent higher, during 3:35 p.m. local
To hit a contributor on this story:
Hannah Benjamin in London at
To hit a editor obliged for this story:
Paul Armstrong at
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