Rlpc upc raises 14 bln euro loan refinancing bankers

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Cable operator UPC Broadband Holding has raised approximately 1.4 billion euros ($1.80 billion) in new loans to refinance a portion of its existing debt, banking sources said. The 1.4 billion euro term loan, which will be known as tranche AG, far exceeds the 400 million euros the company was seeking to raise following strong demand from leveraged loan investors, bankers said.

Leveraged loan investors have been eager to deals following a dearth leveraged activity last year and UPC managed to raise much more than anticipated as UPC is one of the stronger and well liked credits in the loan market, bankers added. The 1.4 billion euro loan will be used to repay a majority of UPC's existing tranche R, tranche S and tranche U debt, which totals around 2 billion euros.

The new term loan will mature on March 31, 2021 and pay an interest margin of 375 bps over Euribor with a 99.75 Original Issue Discount, bankers said. The loan freed to trade on Europe's secondary loan market on Monday and was already quoted higher on Tuesday at 100.1, traders said.

Citigroup, Royal Bank of Scotland and Scotiabank were joint lead arrangers on the new facility. UPC Broadband provides phone, broadband internet, and television services throughout seven European countries. UPC is a subsidiary of Liberty Global, owner of Liberty Media .