Virgin Media selling £800 million equivalent vendor financing notes in dollars and pounds

By Paul A. Harris

Portland, Ore., June 10 – Virgin Media planned to kick off an £800 million equivalent two-part offering of eight-year vendor financing notes (B1/expected B/expected B+) on a Wednesday conference call with investors, according to a market source.

The notes come in dollar and sterling denominations. Tranche sizes remain to be determined.

The Rule 144A and Regulation S deal includes a fungible add-on to the Virgin Media Vendor Financing Notes III DAC (formerly Dolya Holdco 17 DAC) sterling-denominated 4 7/8% notes due July 15, 2028. The notes become callable on July 15, 2023 at 102.438. The original £500 million issue price on June 3, 2020.

The offering also includes a new dollar-denominated offering of Dolya Holdco 18 DAC (to be renamed Media Vendor Financing Notes IV DAC) notes due July 15, 2028. The dollar-denominated notes come with three years of call protection.

Initial price talk on the dollar-denominated notes is in the 5% area, according to a bond trader.

The deal is expected to price on Thursday.

Joint lead bookrunner Deutsche Bank will bill and deliver. Credit Suisse is also a joint lead bookrunner. ING, RBC, ABN Amro, BofA Securities, Banca IMI, Credit Agricole CIB and Lloyds are bookrunners.

Proceeds will be used to refinance the existing £800 million receivable financing notes due 2024.

Virgin Media, a Reading, England-based telecom, is a subsidiary of Liberty Global.

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