Virgin Media spends £178 million to redeem its senior notes due 2014

By Susanna Moon

Chicago, May 12 - Virgin Media inc. said it redeemed in full its senior notes due in 2014 and issued in April 2004. The company said it paid £178 million of the corporate debt using cash from its balance sheet.

The early repayment means the company has no principal amount over £200 million due in any single year until 2015, according to a company press release.

The company said on April 12 that the outstanding senior notes due 2014 covered by the redemption on May 12 are:

• $89,324,000 of dollar-denominated 8¾% senior notes due 2014;

• £78,814,543 of sterling-denominated 9¾% senior notes due 2014; and

• €47,288,726 of euro-denominated 8¾% senior notes.

The company previously said it would pay 102.917 for the 8¾% notes and 103.25 for the 9¾% notes.

On Wednesday, the company noted it has paid a total of £815 million of debt in the last three years from the significant cash flow generated by the business.

Virgin Media concluded a major three-year refinancing program in April, which it said has fundamentally transformed the company's capital structure and reduced the amount of corporate debt due before 2013 by 93%.

The average maturity has been extended to 6.8 years, and the weighted average cost of debt has been reduced to around 7½%.

Virgin Media is a U.K. entertainment and communications company with corporate headquarters in New York and operational headquarters in Hook, England.

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