MTG arranges long-term financing

Editor | 13-12-2013

Leading Scandinavian pay-TV company Modern Times Group (MTG) has successfully replaced its existing SEK6.5 billion credit facility with a new five-year multi-currency injection of SEK5.5 billion and a new SEK1 billion term loan.

As of 30 September 2013, MTG had net debt of SEK373 million which was equivalent to 0.3 times the Group’s trailing 12-month EBITDA. SEK5.6 billion of the Group’s total available credit facilities was not utilised by that time.

MTG’s old credit facility was due in October 2015 and will be replaced by a self-arranged fund provided by a group of eight international banks. DNB, Nordea, SEB, Svenska Handelsbanken and Swedbank are acting as Mandated Lead Arrangers and Bookrunners. Credit Agricole Corporate and Investment Bank, ING Belgium NV/SA and UniCredit Bank Austria AG are Lead Arrangers. DNB and SEB have provided the term loan, which has a maturity of two years, with two extension options of one year each. DNB acts as Facility and Documentation Agent for both facilities.

"We have now successfully arranged new long-term financing for the Group at attractive pricing levels,” explained Mathias Hermansson, MTG chief financial officer. “This reflects our healthy growth and strong cash-flow generation as well as our good relationships with the banks. The new structure will support our ongoing strategic development, as well as our ambition to explore a potential diversification of funding sources moving forward. We will continue the accelerated pace of our investments in growth whilst also continuing to generate healthy total shareholder returns.”