Swedish cablenet Com Hem has secured a new long-term financing agreement with DNB, worth SEK 1 billion (€107 million).

The operator intends to use the new credit facility, together with new short term facilities from Nordea and Danske Bank totalling SEK 500m and existing unutilized facilities, to redeem the €187m Euro Notes issued by the Company’s subsidiary NorCell Sweden Holding 2 AB.

The transaction is expected to reduce the group’s interest cost by approximately SEK 100m annually compared to the Q2 2015 level.

In all the group’s average interest cost is expected to decrease to approximately 3.5% compared to 4.5% in the second quarter of 2015.

Com Hem says it continues to work towards having a long term diversified funding with a mix of bond and bank financing.