Cablenet Communication Systems plc - Details of New Bond Issue

On 21 July 2020, GO plc announced that the Listing Authority approved the Prospectus in relation to a new bond issue by Cablenet Communication Systems plc (the “Issuer”) which, in turn, is GO’s telecoms subsidiary in Cyprus. The salient details of the new bond issue are as follows:

Coupon:

4.00%

Amount Offered:

€40 million

Issue Price:

100% (par)

Interest Payment Date:

Annually on 18 August (with the first interest payment date being 18 August 2021)

Redemption Date:

19 August 2030

Status & Ranking:

The bonds constitute the general, direct, unconditional and unsecured obligations of the Issuer and shall at all times rank pari passu, without any priority or preference among themselves and with other unsecured debt, if any. This means that any secured or privileged debts of the Issuer shall rank at all times ahead of the obligations of the Issuer under the bonds, as a result of which the bondholders may not be able to recover their investment in the bonds in the case of insolvency or an equivalent situation, whether in full or in part. Furthermore, third party security interests may be registered which will rank in priority to the bonds against the assets of the Issuer, as the case may be, for so long as such security interests remain in effect, which registration may further impede the ability of the bondholders to recover their investment upon enforcement of such security interests, whether in full or in part.

Use of Proceeds:

The net proceeds from the bond issue, estimated at €39.5 million after issuance costs, will be used by the Issuer as follows:

  • €14.6 million for capital expenditure projects, namely new network rollout (€6.9 million), information technology systems (€3.4 million), international capacity (€2.2 million) and 4G spectrum (€2.1 million).
  • €14.4 million for the repayment of a fixed term loan with the Bank of Cyprus.
  • €7.3 million for the repayment of a shareholder loan.
  • €3.2 million for general corporate funding.

Deadline for ‘Preferred Applicants’:

The Issuer has entered into Pre-Allocation Agreements with a number of Authorised Financial Intermediaries in advance of the offer period, whereby the Issuer bound itself to allocate a total amount of €32 million worth of bonds to such Financial Intermediaries. The remaining balance of €8 million worth of bonds is available for subscription by ‘Preferred Applicants’ – namely GO plc shareholders as at close of trading on Wednesday 15 July, and GO plc employees. The offer period for ‘Preferred Applicants’ will open at 08:30 hours on 23 July 2020 and will close at 12:00 hours on 6 August 2020. Applications must be for a minimum of €2,000 (nominal) and in multiples of €1,000 (nominal) thereafter.

Listing:

Official List of the Malta Stock Exchange

Downloads:

Cablenet Communication Systems plc – Bond Issue Slide Show

Cablenet Communication Systems plc – Bond Prospectus dated 21 July 2020

Disclaimer:

The value of investments may increase as well as decrease and past performance is not an indication of future performance. Prospective investors are urged to read the Prospectus issued by Cablenet Communication Systems plc dated 21 July 2020 including the ‘Risk Factors’ which are found in Section 3 of the Registration Document on pages 17 to 19, and in Section 2 of the Securities Note on pages 48 to 50. Prospective investors are urged to consult an independent financial advisor for advice prior to investing in the bonds. 

This webpage has been prepared based on the Prospectus dated 21 July 2020 issued by Cablenet Communication Systems plc and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts NO responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.

Rizzo, Farrugia & Co. (Stockbrokers) Ltd is acting as Sponsor, Manager and Registrar to Cablenet Communication Systems plc.