Rlpc spains ono signs 14 bln euro loan refi

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May 24 Spanish cable company ONO battled through tough European credit market conditions and signed a 1.4 billion euro ($1.76 billion)loan refinancing to resolve its looming 2013 maturities, the company announced on Thursday. The company, also known as Cableuropa, entered into talks with its lenders to address its debt pile last month in a bid to take advantage of stronger credit market conditions and refinance 1.4 billion euros of leveraged loans. It met with some difficulties in a weakening environment which meant that other options including a more costly amend and extend process were also considered, banking sources said.

The new loan is the final step of ONO's long running refinancing plan and means that ONO has no major debt maturities until 2017. The financing was agreed with Bank of America Merrill Lynch, Bankia, BBVA, BNP Paribas, Credit Agricole CIB, Deutsche Bank, Instituto de Credito Oficial, ING, JP Morgan, Santander, Societe Generale and Unicaja. Societe Generale was agent on the deal.

The new loan comprises an 890.7 million euro term loan A paying a margin of 450 bps over EURIBOR; a 185 million euro term loan B paying 525 bps over EURIBOR; and a 100 million euro revolving credit facility paying 450 bps over EURIBOR. The loans will be launched to a few relationship investors although exact timing is still to be decided.

There is also a 224.3 million euro, bullet bridge loan paying 525 bps over EURIBOR which is expected to be refinanced though an appropriate debt instrument, subject to market conditions, ONO said. Under the new financing agreement, 1 billion euros and $1 billion of existing senior secured high yield bonds will become part of the new senior bank facility which totals around 3.2 billion euros. ONO started its refinancing programme in October 2010 when it issued 700 million euros of senior secured bonds. That was followed by 463 million euros of subordinated bonds in January 2011, 300 million euros of senior secured bonds in July 2011 and $1 billion of senior secured bonds in February 2012. ($1 = 0.7948 euros)