LONDON, Oct. 13, 2008 (GLOBE NEWSWIRE) -- Virgin Media Inc. (Nasdaq:VMED), a leading UK entertainment and communications business, today announced that it is seeking the consent of its senior lenders to amendments to its senior facilities agreement.
Summary
This Summary should be read in conjunction with the full text of the announcement, which follows.
* Virgin Media is seeking the consent of its senior lenders to
amendments to its senior facilities agreement which would,
alongside other changes, roll back bank amortization payments
owed to participating lenders to June 2012.
* Virgin Media's senior facilities agreement currently comprises
GBP4,324 million of term loans in A, B and C tranches, in
addition to a GBP100 million revolving facility. The company has
already repaid approximately GBP900 million of its indebtedness
under its senior facilities agreement from cash generated from
its operations and from the proceeds of subordinated indebtedness
since March 2006. The company expects to fund its next material
amortization payment, due in Q1 2010, from available cash
generated from its operations.
* Virgin Media originally anticipated entering into a new credit
facility by mid 2009 to refinance these obligations. However, in
light of the disruption to the credit markets, the company has
decided to proactively address its amortization payments that are
due in 2010 and 2011.
* The proposed amendments will allow Virgin Media significantly
more time to seek a complete refinancing of the principal amounts
that will remain outstanding under its senior facilities
agreement after the amendment process is complete.
* Virgin Media has brought in a new experienced management team
that is focusing on the core strengths of the business and
maximizing the generation of cash flow. The company has also
recently expanded its Board with the addition of five new
directors with significant relevant experience. By seeking the
amendments today, Virgin Media aims to remove any potential
future concerns that might otherwise arise over its ability to
meet its principal amortization obligations, thereby permitting
its management to focus on continuing to enhance operations and
grow cashflow over the next three years.
* Virgin Media's top ten relationship banks have unanimously
confirmed their support for the proposed amendments.
Neil Berkett, Chief Executive of Virgin Media said, "Virgin Media has never been in better operational shape and generates significant cashflow. These amendments to our senior facilities, if approved, will enhance our financial flexibility and allow management to focus on continuing to enhance operations and grow cashflow.
"We believe that these amendments are in the best interest of customers, stockholders, lenders, employees and other stakeholders in light of the current status of the credit markets."
Full Announcement
Virgin Media Inc. (Nasdaq:VMED), a leading UK entertainment and communications business, today announced that it is seeking the consent of its senior lenders to amendments to its senior facilities agreement which would, alongside other changes, roll back bank amortization payments owed to participating lenders to June 2012. Virgin Media's top ten relationship banks have unanimously confirmed their support for the proposed amendments.
Background to and Reasons for Amendment Request
Virgin Media's senior facilities agreement currently comprises GBP4,324 million of term loans in A, B and C tranches, in addition to a GBP100 million revolving facility.
