LONDON, Dec. 16, 2008 (GLOBE NEWSWIRE) -- Virgin Media Inc. (Nasdaq:VMED), a leading UK entertainment and communications business, today announced that it has given notice to the Agent under its senior credit facilities that it intends to repay GBP 300m of its senior credit facilities on or about December 23, 2008. Virgin Media will make the GBP 300m repayment using cash on its balance sheet.
In accordance with the recent amendment of its senior credit facilities, the changes to the amortization schedule of the A tranches and the final maturity date of the revolving facility, as well as the relaxation of the financial covenant ratios, are conditional upon Virgin Media's repayment of GBP 487m of debt. This represents 20% (GBP 416 million) of the amounts currently outstanding under the A tranches to those lenders and the simultaneous payment (totaling GBP 71 million) to those B lenders who have not consented to relinquish their pro rata right to prepayments when it makes repayments under the A tranches.
Virgin Media has until May 10, 2009 to pay the remaining GBP 187m due to satisfy the repayment condition and has an option, exercisable at a cost of GBP 1.5 million, to extend that deadline until August 10, 2009.
After repayment of 20% of the A tranches in satisfaction of the repayment condition and pro rata payments to non-consenting B lenders, the Company's new amortization schedule under its senior facilities agreement will be as follows:
March 2010 GBP 33m September 2010 GBP 172m March 2011 GBP 288m June 2012 GBP 1,167m September 2012 GBP 1,910m March 2013 GBP 300m
The lenders who have individually consented to the new provisions governing the new A2 and A3 tranches and revolving facility will enjoy a margin increase of 1.375% compared to the margins on the A and A1 tranches and revolving facility, with effect from the satisfaction of the remaining repayment condition. The lenders who have individually consented to the new provisions governing the new B7 to B12 tranches benefited from a margin increase of 1.50% compared to the margins on the B1 to B6 tranches, effective as of November 10, 2008.
Additionally, in November 2008, Virgin Media paid GBP 49.0 million in fees to its lenders and advisors in connection with the amendments. A remaining GBP 11.5m in fees is payable to the consenting A lenders upon full satisfaction of the repayment condition.