Cyfrowy Polsat Capital Group is analyzing the possibility and potential terms of refinancing its current debt in order to simplify its structure, further optimize the terms and reduce the cost of its servicing.
In reference to investors’ inquiries as well as information published in the media, the company confirms that it has begun preliminary analyses of possibilities and potential terms of refinancing of the Capital Group’s current debt which amounts to PLN 13 bn.
Potential refinancing could cover both the existing bank loans and other debt instruments used by the Group’s companies, leading to such positive developments as:
- reduction of interest-related costs, e.g. by replacing Metelem Group’s high yield bonds by a debt reflecting current market terms, thus giving the Group tangible savings on interest payments,
- higher flexibility thanks to eliminating restrictions related to cash flows between Metelem Group and other companies from Cyfrowy Polsat Group, which could improve the effectiveness of liquidity management within the Group, hence enabling further integration of Cyfrowy Polsat and Polkomtel.
“As the market situation is favorable for big companies, we are contemplating refinancing the Group’s current debt in the near future. Debt optimization has always been one of our priorities,” says Tomasz Szeląg, Management Board Member responsible for finance at Cyfrowy Polsat and Polkomtel. “We are reviewing the possibility of refinancing our entire current debt. While contemplating the potential structure, at this stage we are mainly considering a loan denominated in Polish zloty and Polish bonds. Our main target is to simplify the debt structure as well as to optimize its terms and reduce the debt servicing costs, thus giving the Group more flexibility in doing business and create favorable conditions for its future development,” adds Tomasz Szeląg.
Market analyses and consultations are carried out on behalf of the company by Trigon Brokerage House.
The potential decision to go ahead with refinancing as well as the selection of the final structure of such refinancing will depend on, among others, the positive outcome of current analyses as well as the present situation on financial markets. The decision will be communicated to the public while observing the company’s relevant disclosure requirements.
