Virgin Media to spend £200 million to buy back debt and convertibles

By Susanna Moon

Chicago, Dec. 14 - Virgin Media Inc. said its board of directors authorized using up to £200 million to buy back its debt and convertible debt through open market, privately negotiated or derivative transactions until the end of 2014.

The move is part of a broader strategy that "further underscores our commitment to both financial discipline and to offering attractive returns to investors. Together with our leverage range, this will allow for meaningful flexibility to reinvest in our business, maintain our strong credit quality, complete our likely refinancing activity and maximize the total returns to our stockholders," according to a company press release.

The company has made significant progress in refinancing high-coupon debt, having issued £2.2 billion of low-coupon bonds and deleveraging the business since setting a leverage target of about 3 times 2.5 years ago, the release noted.

Going forward, the company plans to manage the business in a leverage range of 3 to 3.25 times net debt to operating income before depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges, and its expects "to progressively achieve this range over the coming quarters," the company said.

New York-based Virgin Media provides television, broadband, fixed-line telephone and mobile telephone services in the United Kingdom.

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