NTL has offered existing shareholders, until November 17, the chance to buy shares for $40 – the market price is currently $64. If the offer is taken up by every shareholder it will raise $1.37 billion, net of costs.
It intends to use $582 million of the cash to attack established loans, with $630 million used to repay temporary loans, and $105 million will be paid to the subsidiary holding the remaining bank debt.
The rest will be used for ‘general corporate purposes,’ leaving the company with an estimated $5.3 billion in debt.
NTL has been slowly improving its performance, reducing its losses, increasing sales and increasing customer numbers. It is widely expected to merge with fellow UK cable company Telewest [TWSTY], once it has concluded its own debt restructuring.
