NTL expected to launch $1 billion equivalent multi-tranche deal during post-Memorial Day week

By Paul A. Harris

St. Louis, May 23 - NTL Cable plc, a subsidiary of London-based communications company NTL Inc., plans to issue $1 billion equivalent of new high-yield bonds as part of the refinancing for the £1.8 billion bridge facility it incurred in connection its reverse acquisition of Telewest Global Inc., according market sources.

A sellside source said that the deal is expected to launch early next week and added that the bonds are expected to be sold in dollar-, euro- and sterling-denominated tranches.

The syndicate is expected to be comprised of joint bookrunners JP Morgan, Deutsche Bank, Goldman Sachs and The Royal Bank of Scotland, according to a buyside source.

The new bonds would rank pari passu with NTL's existing bonds.

Initially NTL obtained a $3.1464 billion one-year senior subordinated bridge facility. Pending an Internal Revenue Service ruling, the bridge loan would be reduced by £1.2 billion.

If the company receives a favorable ruling from the IRS it will use the bond proceeds in addition to a new term loan to repay the bridge.

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