Hungarian Telephone to offer €200 million notes for Invitel purchase

By Paul A. Harris

St. Louis, Jan. 23 - Hungarian Telephone and Cable Corp. (HTTC) plans to bring a €200 million offering of floating-rate notes to market during the second quarter of 2007, according to a market source.

Merrill Lynch, BNP Paribas and Calyon Securities will lead the deal, which HTTC is bringing in connection with its acquisition of Hungarian competitor Invitel.

The source added that Invitel's outstanding bonds, including its Euribor plus 825 basis points floating-rate PIK notes (B3/B-) due April 2013, which priced at 99.00 last October, are subject to change-of-control provisions.

However, the source added, a request to keep those issues in place is expected.

HTTC will amend its credit facilities as part of the transaction, which involves no new bank debt.

HTTC is 62% owned by Danish telecommunications company TDC, with the remainder of the company's shares publicly traded on Nasdaq. HTTC has headquarters in Budapest and Seattle.

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