LONDON, Jan 4 (Reuters) - Shareholders in UK-based broadcast transmission provider Arqiva have agreed to inject 780 million pounds ($1.26 billion) of fresh equity to complete a key 3.7 billion pounds loan and bond refinancing, banking sources said on Friday.
Arqiva’s seven shareholders were asked by banks for new equity to pay down existing debt. This will help the company to get an investment-grade BBB credit rating and allow it to issue bonds, the sources said.
The shareholders, which include Canada Pension Plan Investment Board with a 48 percent holding and Macquarie European Infrastructure Fund 2 which owns 25 percent, raised 380 million of the 780 million pounds equity injection by not taking dividends from Arqiva.
“Our shareholders have played a fundamental role in Arqiva’s refinancing and have not taken any distributions since 2009. An equity contribution of 780 million pounds will support the company as part of the refinancing,” Arqiva spokesman Gary Follows said.