Wednesday, 6 May 2009

Jazztel restructures debt – Spain

Further to last week’s article, Spanish MVNO and telecommunications company Jazztel has said that it will buy back up to EUR 140,000,000 (USD 191,000,000) of its convertible bonds with a reported discount of up to 50 percent of face value.

The MVNO, which uses the Orange Spain network, said that the buyback will reduce its debts with bondholders from EUR 251,000,000 (USD 343,000,000) to EUR 119,000,000 (USD 162,000,000).

The deal will reportedly be financed with a EUR 80,000,000 (USD 109,000,000) rights issue, EUR 70,000,000 (USD 96,000,000) will be earmarked for the bond buyback and EUR 10,000,000 (USD 14,000,000) will be used to assure its capital base.

Jose Miguel Garcia, Jazztel Chief Executive Officer, said: "The most important thing is that the deal clears any doubts regarding our financial capacity.”

Jazztel also reported that its Q1 revenues have climbed to EUR 101,600,000 (USD 221,000,000) compared to EUR 79,900,000 (USD 109,000,000) during the same period in 2008. Jazztel also announced that it had cut net losses by 33 percent from EUR 24,200,000 (USD 33,000,000) down to EUR 16,200,000 (USD 22,100,000).