NTL, the UK’s largest cable operator, has unveiled plans to raise $1.43 billion to enable the firm to regain its financial footing.
Under the terms of the proposed rights issue, 35.8 million shares will be offered at $40 each, the objective being to reduce the company’s debt to around $5.3 billion.
Current shareholders will receive 0.702 rights for each share of common stock held by them as of the close of business on November 7. W.R. Huff Asset Management and Franklin Mutual Advisers, who between them hold around 21% of NTL stock, have already agreed to exercise their rights (see Rights Issue Underway At NTL) and will purchase a further 7.6 million shares.
According to the Financial Times, the deal will put NTL in a better position to refinance $4.3 billion in long-term debt that becomes due in September 2005 and make a takeover bid for its rival, Telewest (see UK Cable Merger Still Viable).
Revenues at NTL rose by 5% in the third quarter and the firm cut losses by 68% to £117.3 million (see Broadband Boom Drives NTL Recovery In Q3).
