Providence seeks M7 dividend recap

The company is hoping to raise €355m in debt to refinance its existing loan notes and pay a large dividend to Providence and Airbridge, Reuters reported. M7's debt is believed to have decreased substantially since 2007 due to a healthy level of cashflow.

BNP Paribas and Deutsche Bank are reported to be global coordinators for the transaction, while Credit Agricole and Mizuho are believed to be acting as bookrunner and lead arranger respectively.

Providence initially invested in Canal Digitaal Satelliet and TV Vlaanderen in February 2007, two companies that later formed part of M7 Group alongside Télésat in French-speaking Belgium and AustriaSat in Austria, as well as CS Link and Skylink for the Czech Republic and Slovakia.

Canal Digitaal is a Hilversum-based provider of satellite television and radio for the Netherlands. Providence acquired its majority stake in the company from Airbridge, which also retained a shareholding. Airbridge had originally acquired Canal Digitaal in September 2004 from Canal Plus, alongside Greenfield Capital Partners, according to unquote" data.

Airbridge owned 100% of both Canal Digitaal and TV Vlaanderen prior to Providence's investment. TV Vlaanderen provides satellite television services to the Flanders region of Belgium.

M7 Group is now headquartered in Luxembourg, having been established as a group in 2009.

Providence and M7 were not yet available for comment.

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• Topics
• Benelux
• Media
• Luxembourg
• Refinancing