Ziggo Said to More Than Double Leveraged Loans to $3.9 Billion

Ziggo Group Holding BV, which is merging with Vodafone Group Plc’s Dutch business, more than doubled the amount it plans to raise in loans to $3.9 billion, taking advantage of investor demand for higher-yield assets.

The telecom company increased a euro-denominated leveraged loan to 2.6 billion euros ($2.9 billion), and raised a dollar loan to $1 billion, according to a person familiar with the matter, who is not authorized to speak publicly and asked not to be identified. Allocations for the eight-year loans, which will replace existing debt, are expected on Friday, the person said.

Investor appetite for leveraged loans and other risky assets has grown this year as central-bank easing crushes bond yields. Loan prices in Europe are near a nine-year high, and there has been a pickup in sales of collateralized loan obligations, which package debt into tradeable securities.

Ziggo, which is controlled by billionaire John Malone’s Liberty Global Plc, won European Union regulatory approval to merge with Vodafone’s Dutch operations earlier this month. Caspar Bos, an investor-relations official at Liberty Global, declined to comment on the loan.

The average price of loans in Europe was 97.6 cents on the euro on Thursday, according to a Standard & Poor’s Global Ratings index.

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