Spanish regional cable operator Euskaltel has said it has succeeded in reducing the cost of a €300 million institutional term loan by 21%, equivalent to 100 base points, leaving it with superior terms to those of comparable operators active in the market in recent months.
The €300 million term loan was part of a €900 million syndicated financing of Basque Country operator Euskaltel’s acquisition of Galician operator R last year.
Euskaltel said it completed its latest financial move in 10 days, securing the unanimous approval of 39 institutional investors.
Euskaltel CEO Francisco Arteche said that the operation signaled the confidence of the company’s investors in its strategy, based on growth in customers and revenue alongside the creation of efficiencies and disciplined management of costs.
BBVA acted as advisor and bookrunner for the operation. Euskaltel said it expects to save close to €3 million a year on servicing the debt, which matures in 2022.
Euskaltel’s shares have faced a torrid time since the company was floated in July 2015, losing about 15% of their value over a period that saw infighting between new and older shareholders and the departure of former CEO Fernando Ojeda in May, before bouncing back to some extent following the appointment of Arteche in August.
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