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BSkyB prices £3.25bn bond issue to cover the cost of Sky Europe
SHARES in British Sky Broadcasting fell slightly in trading yesterday after it priced £3.25bn of euro- and US dollar-denominated bonds to help it buy Sky Italia and Sky Deutschland.
The deal will create a so-called Sky Europe, a pan-European PayTV empire, described by BSkyB as a “world-class, multinational pay TV business with enhanced headroom for growth and immediate benefits of scale”.
Sky’s gross debt, which stood at £2.6bn in June, will rise to £5.9bn as a result of the bond issue. BSkyB announced in July that it would purchase 100 per cent of Sky Italia and 57.4 per cent of Sky Deutschland. The bonds will cover four tranches with due dates from 2019 to as far as 2026, and coupons from 1.5 per cent to as much as 3.75 per cent.