Ziggo sets talk on U.S. and euro term loan B tranches with launch

By Sara Rosenberg

New York, Jan. 28 - Ziggo launched on Tuesday the U.S. portion of its €3,735,000,000-equivalent senior secured term loan B due Jan. 15, 2022 with price talk of Libor plus 250 basis points to 275 bps and the euro portion of the loan with talk of Euribor plus 275 bps to 300 bps, according to a market source.

Also, the entire term loan B is being offered with an original issue discount of 993/4, the source said.

As previously reported, all of the term debt is talked with a 0.75% floor and 101 soft call protection for six months.

Covenants include net senior leverage and total financial leverage ratios.

Commitments are due at 5 p.m. ET on Feb. 4.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the global coordinators on the deal and bookrunners with ABN Amro Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., Nomura Securities Co. Ltd., Rabobank, Scotiabank and Societe Generale. Scotiabank is the administrative agent on the entire term loan B.

Proceeds will be used to refinance existing Ziggo debt and help fund the acquisition of Ziggo by Liberty Global plc.

Liberty is buying Ziggo in a stock and cash transaction valued at about €10 billion.

Specifically, Ziggo shareholders will receive €11.00 in cash, 0.2282 Liberty Global Class A ordinary shares and 0.5630 Liberty Global Class C ordinary shares for each Ziggo share that they hold. The stock component equates to €3.4 billion and the cash component equates to €1.6 billion.

Closing is expected in the second half of this year.

Ziggo is a Utrecht, the Netherlands-based provider of entertainment, information and communication through television, internet and telephony services. Liberty Global is an Englewood, Colo.-based cable company.

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