Arqiva Ltd.’s shareholders will provide a 780 million-pound ($1.3 billion) equity injection as the U.K. broadcast transmission provider seeks to refinance 3.7 billion pounds of debt.
The company’s seven shareholders have agreed to contribute 400 million pounds of new equity in addition to 380 million pounds of existing reserves to facilitate the deal, company spokesman Gary Follows said in an e-mail.
Arqiva is in negotiations with 20 banks for about 2.5 billion pounds of loans to help refinance its current facility, which starts to mature in 2014, Follows said. The company also plans to sell 500 million pounds of senior investment-grade bonds and a junior holding company bond in the first quarter to replace the remainder, he said.
Arqiva’s two largest shareholders are Canada Pension Plan Investment Board with a 48 percent stake and Macquarie European Infrastructure Fund 2, which owns 25 percent, according to the company’s website. The owners haven’t taken dividends since 2009, allowing cash reserves to build, Follows said in the e-mail.