Sky $600m bond
November 19, 2008
BskyB is to raise $600m in a bond issue to institutional investors to provide funding for activities including possible acquisitions and the refinancing of debt. It launched a private placement late yesterday of 10-year bond notes at 9.5% interest.
“It is expected that the net proceeds of the offering will be used for general corporate purposes,” Sky said. “In addition, the company may use the proceeds for the refinancing of existing debt and for acquisitions of business and/or assets in support of its strategy.”
Sky has been linked as a potential bidder for Carphone Warehouse’s telecoms operation, Talk Talk, to boost its broadband subscriber base. CW has recently said it is considering splitting its telecoms and retail operations. The company is also favourite to buy the UK assets of Italian broadband group Tiscali, with a bid reported to be about £450m.