RCS & RDS Plans To Issue $200M 7-Yr Bonds – S&P

On Friday, S&P said in a statement that it assigned its ‘B’ long-term corporate credit rating to Romania-headquartered quadruple-play telecom and pay-TV services provider RCS & RDS, placing the rating on CreditWatch with positive implications.

„In addition, we assigned our ‘B+’ debt rating to the proposed $200 million senior unsecured bond due 2017, to be issued by RCS & RDS,” the release said.

„We understand that the bond is not underwritten by the arrangers. The rating on the proposed bond is subject to its successful issue, and to our review of the final documentation. In the event of any changes to the amount or terms of the bond, the corporate credit rating and issue ratings could be subject to further review,” S&P also said.

According to an announcement published by RCS & RDS in the Official Gazette in November 2009, the company’s shareholders should have discussed the $200 million bond issue in an extraordinary meeting held on December 22.

In 2007, RCS&RDS announced its plans to attract between $400 million and $600 million from listing up to 15% of its shares on the London Stock Exchange, but it eventually gave up its intention due to weak market conditions.

According to Trade registry data, RCS&RDS has a share capital of 42.206 million lei (EUR1=RON4.1397), split up into 42,206,417 shares with a face value of RON0.1 each.

The group is indirectly held by Romanian businessman Zoltan Teszari. Dutch Cable Communications Systems holds an 88.9% stake in the company, RCS&RDS has a 5.04% stake, Zoltan Teszari – 2.03%, Csaba Ianos Ludescher – 1.1%, while other 15 natural persons own below 1% of the company’s share capital.

With more than five million customers, RCS&RDS also operates in Hungary, the Czech Republic, Croatia, Slovakia, Serbia and Spain.

The company was established 15 years ago and employs 6,500 people.