Virgin Media kicks off autumn session with O2 financing for divi

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By Owen Sanderson
10 Sep 2020

Virgin Media started the autumn session in European leveraged finance in style with a five part offering to raise the cash for its joint venture with Telefónica’s O2 unit. The deal underscores how far capital markets have come since the dark days of April, when the £30bn ($38.9bn) mega merger was backed by an investment grade loan to insulate the tie-up from the effects of a prolonged downturn in leveraged credit, reports Owen Sanderson.

The joint venture, which will consolidate one of the UK’s largest cable networks with one of its largest mobile networks, does not rely on external financing — it is structured as a 50:50 joint venture, with Liberty Global, Virgin’s owner, paying Telefónica an equalisation payment reflecting the different ...

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