Eircom talks €425 million PIK notes due 2017 at Euribor plus 700 bps at par

By Paul A. Harris

St. Louis, Nov. 16 - BCE IPE Ltd. (Eircom Group plc) has talked its €425 million offering of new floating-rate PIK notes at three-month Euribor plus 700 basis points, according to an informed source.

Pricing is expected on Friday.

The notes will mature in February 2017, which is six months after the company's existing floating-rate notes mature.

Credit Suisse, Deutsche Bank Securities, JP Morgan and Barclays Capital are joint bookrunners. Dresdner Kleinwort is the co-manager.

Proceeds will be used to fund a dividend to shareholders, the Employee Share Ownership Trust and sponsor Babcock & Brown Capital.

Eircom priced the above-mentioned €350 million issue of senior floating-rate notes due Aug. 15, 2016 (B2/B at the time of issue) at par to yield three-month Euribor plus 500 basis points on Aug. 10, 2006.

Dublin, Ireland-based Eircom operates fixed-line and mobile telephone networks and is an internet service provider.

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