Bloomberg News

UPC Broadband Seeks $500 Million Term Loan to Refinance Debt

October 20, 2011

(Updates with call protection in fourth paragraph.)

Oct. 20 (Bloomberg) -- UPC Financing Partnership, a unit of UPC Broadband Holding BV, is seeking a $500 million term loan to refinance debt, according to a person with knowledge of the transaction.

The debt due in December 2017 will pay 3.5 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, a rate banks charge to lend to each other, will have a 1.25 percent floor.

The Netherlands-based provider of broadband services is proposing to sell the loan at 97 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.

Lenders are being offered one-year soft-call protection of 101 cents, meaning UPC would have to pay lenders 1 cent more than face value to refinance the debt during the first year, the person said.

Citigroup Inc. and Goldman Sachs Group Inc. are arranging the deal for the subsidiary of John Malone’s Liberty Global Inc. and lenders must submit commitments by Oct. 25 at 5 p.m. in New York.

Hanne Wolf, a spokeswoman for Liberty Global, didn’t respond to an e-mail seeking comment.

--Editors: Chapin Wright, John Parry

To contact the reporter on this story: Michael Amato in New York at

To contact the editor responsible for this story: Chapin Wright at

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