Moody's: Cableuropa outlook stable

Moody's Investors Service said it changed the outlook for Cableuropa SAU to stable from negative following the company's announcement that it has successfully completed its proposed refinancing package.

The company's B3 corporate family rating and the Caa2 ratings assigned to ONO Finance plc's €180 million 10½% senior notes due 2014 and ONO Finance II plc's €270 million 8% senior notes due 2014 are unchanged.

The plan involves the partial refinancing of Cableuropa's €3.6 billion senior facility by partially extending the maturities of its A, B and I tranches to 2013. It also includes a commitment by shareholders to inject up to €200 million in the form of a deeply subordinated profit participative loan.

Moody's said the fact that over 80% of the lending banks have accepted the refinancing package implies a substantial improvement of the group's liquidity in the short term and that the refinancing extends the short-term maturities, eases refinancing needs and releases pressure on the covenant headroom.

Cableuropa has also obtained approval from its senior lenders to issue new senior secured debt in the form of loans or bonds. Proceeds would be used to refinance existing debt under the €3.6 billion senior facility agreement.

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