GO plc - Forthnet concludes debt restructuring

On 25 July, the Greek telecommunications group Forthnet S.A., in which GO plc has an indirect shareholding, revealed that it concluded two long-term, secured bond facilities totalling €90 million. The financing was arranged by National Bank of Greece as part of the overall renegotiation of the Group’s outstanding debt amounting to €335 million. The bonds will be issued by Forthnet SA and Forthnet Media Holdings SA for €40 million and €50 million respectively, and will be subscribed in full by the banking syndicates which have financed the Group’s growth initiatives to date.

With this financing agreement, Forthnet releases additional liquidity which will help maintain a balanced approach between funding its expansion needs and managing its financial resources taking into consideration the constraints of the country’s macroeconomic environment.

Following the signing of the new facilities, Evangelos Raptis, Forthnet’s CFO commented: “This new round of financing is a clear vote of confidence by the financial community to our growth vision through the convergence of residential communication and entertainment services. At a time of deep recession for our country, Forthnet remains a convincing growth story thanks to the loyalty of our Greek customers and the support of the local banking sector.”

Forgendo Ltd (a joint-venture between GO plc and its parent company EITL) currently owns 41.27% of Forthnet.