TVN group issued bonds worth PLN 500m maturing in June 2012. The interest amounts to 9.5 percent.
“According to TVN, the company should save 1 percentage point against the debt costs it has had so far. This is good news but one could expect better conditions. I expected the margin would be 0.5 percent point lower”, Piotr Grzybowski, DI BRE Bank analyst said.
Grzegorz Litynski, KBC Securities said in a report yesterday that the costs are 1 percentage point, or PLN 5m, higher than expected.
The analysts believe that the reason is the controversial investment in “n” platform. TVN wants to spend funds raised in the bond issue to buy 25 percent of the platform worth EUR 95m. The company wants also to buy back the whole or part of its 10-year bonds worth EUR 225m.
(PLN 1 = EUR 0.298)