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Virgin Media to launch $2.76 billion seven-year term loan on Thursday
By Sara Rosenberg
New York, Feb. 6 - Virgin Media Investment Holdings Ltd. is scheduled to hold a bank meeting at 10 a.m. ET on Thursday in New York to launch a proposed $2,755,000,000 senior secured seven-year term loan B, according to a market source.
The company is also coming to market with a £600 million senior secured seven-year term loan B, the source said.
Credit Suisse Securities (USA) LLC, BNP Paribas Securities Corp., Bank of America Merrill Lynch, Barclays and Deutsche Bank Securities Inc. are the lead banks on the deal.
The U.S. term loan is talked at Libor plus 300 basis points and the GBP term loan is talked at Libor plus 375 bps, with both having a 0.75% Libor floor and an original issue discount of 991/2, the source continued.
In addition, both term loans include 101 soft call protection for six months.
Expected corporate ratings are Ba3/BB-.
Commitments are due on Feb. 13, the source added.
Proceeds will be used to help fund the acquisition of Virgin Media by Liberty Global Inc. for $23.3 billion in stock and cash.
Under the agreement, Virgin Media shareholders will receive $17.50 in cash, 0.2582 Liberty Global series A shares and 0.1928 Liberty Global series C shares for each Virgin Media share.
Other funds for the transaction will come from £2.3 billion equivalent notes at Virgin Media, a draw on Liberty's existing credit facilities, cash on hand and other sources of liquidity at Virgin Media.
Closing is expected in the second quarter, subject to majority approval from both companies' shareholders, regulatory approvals and other customary conditions.
Virgin Media is a New York-based provider of broadband, television, mobile phone and home phone services in the United Kingdom. Liberty is an Englewood, Colo.-based cable company.
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