BC Partners’ Com Hem in €187m refinancing

Com Hem arranged a SEK 1bn long-term credit facility with DNB, as well as short-term facilities with Danske Bank and Nordea totalling SEK 500m, which will be used in conjunction with existing facilities to redeem the outstanding balance of the group's senior bond.

The Stockholm-listed company expects the refinancing to bring down interest costs by nearly SEK 100m a year, compared to the Q2 2015 level.

The euro-denominated bond that will be refinanced was issued by Com Hem Holding's subsidiary NorCell Sweden Holding 2 in November 2011. The €187m outstanding on the €287m, 10.75% fixed-rate note will be redeemed.

Following the refinancing, Com Hem's average interest cost is expected to decrease to 3.5% from 4.5% in Q2 2015, and will leave the group's total credit facilities – including a SEK 2.5bn senior secured bond – totalling SEK 10.375bn with an average maturity of 3.7 years.

Previous funding
Com Hem was acquired by BC in 2011, with the firm paying around €1.85bn to buy the business from Carlyle and Providence Equity Partners.

The two parties had acquired Com Hem in January 2006 for €1.49bn in a secondary buyout from EQT, which had paid €235m to buy the company back in June 2003, according to unquote" data.

Com Hem listed on the Nasdaq Stockholm exchange last year in an IPO that valued the group at SEK 11.47bn. A year on, BC remains the largest shareholder in the company with a 35.77% stake.

Company
Founded in 1983 and headquartered in Stockholm, Com Hem is a provider of broadband, television and telephony services in Sweden. Nearly 2 million households are connected to Com Hem's services, and the company employs a staff of 1,100.

The group had revenues of SEK 4.7bn in 2014, with an EBITDA of SEK 2bn.

People
Anders Nilsson is the CEO of Com Hem.

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• Topics
• Nordics
• Restructuring
• Technology
• Sweden
• BC Partners
• Refinancing
• unq2015oct