ONO refinancing begins with E200m

Major Spanish cableco has begun a major refinancing with a E200 million injection from existing VC backers. The company, which faces large repayments on a E3.5 billion loan, plans to negotiate to push the 2010, 2011 and 2012 amortisation schedule out to 2013.

ONO initiated discussions with its main relationship banks at the back-end of 2009, and gained support from around 40% of lenders meetings are due next week to try and bring the other onside. Lenders will then have until the end of January or early February to decide whether to agree to the amendments, the people said.

The plans come as part of ONO’s wider strategy to ease its liquidity shortage.

As part of the refinancing, ONO is likely to tap the bond market – like Virgin Media – in the mid to long-term once the loan amendment and capital injection are achieved.

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