Ziggo Gets $1 Billion Loan to Refinance Debt Ahead of Bond Sale

Ziggo NV (ZIGGO), a Dutch cable television operator, raised 800 million euros ($1 billion) of loans to refinance debt and hired banks for a potential bond sale.

The company, whose biggest shareholders are Warburg Pincus LLC and Cinven Ltd., received commitments for the five-year debt from a group of 13 banks, according to a statement. The term loan and credit line pay an interest rate of 200 basis points more than benchmark rates, it said. A basis point is 0.01 percentage point.

The Utrecht, Netherlands-based company said Goldman Sachs Group Inc. and JPMorgan Chase & Co. has hired to arrange investor meetings for a potential bond sale that may be used to refinance debt. Investor meetings for the deal begin today, said a person familiar with the transaction, who asked not to be identified because the terms aren’t set.

Ziggo, with 2.9 million TV customers at the end of last year, is rated Ba1 by Moody’s Investors Service and BB by Standard & Poor’s, according to data compiled by Bloomberg. Earlier this month it said Deutsche Telekom AG Chief Executive Officer Rene Obermann will replace CEO Bernard Dijkhuizen, who is set to retire.

The banks providing the loan are ABN Amro Bank NV, BNP Paribas SA, Rabobank International, Credit Suisse Group AG, Goldman Sachs, ING Groep NV, JPMorgan, Morgan Stanley and Societe Generale SA, according to the statement.

The company, which has about 3 billion euros of debt, got approval from lenders in April 2011 to amend terms and extend the maturities of its term loan B debt, part of a 4.35 billion- euro financing signed in 2006. It also raised a 460 million-euro term loan F paying a margin of 325 basis points more than benchmarks.

To contact the reporter on this story: Julie Miecamp in London at jmiecamp@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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