NTL Plans $1bn Rights Issue to Meet Loan Deadline

19 September 2003

Cable-TV group NTL hopes to raise over $1 billion (€886 million; £619m) through a rights issue in order to redeem a loan before the year end.

The company – listed in the US but operating chiefly in the UK and just eight months out of Chapter 11 bankruptcy protection – needs the cash to meet a payment of $600m plus interest, due in early January. Failure to do so will incur a $50m penalty.

The loan is linked to the group’s recent debt-for-equity restructuring. NTL arranged funding from its bondholders via seven-year $500m bonds.

The rights issue – underwritten by J P Morgan, Deutsche Bank and Goldman Sachs – is expected any time before the end of October, and could even take place next week.

Data sourced from: Telegraph.co.uk; additional content by WARC staff