Ono negotiates to defer his debt until 2013

Ono, the only cable operator with national coverage, today announced the launch of its debt refinancing plan, adjusting short-term maturities with the business's cash flow generation scheme, while providing it with an injection of liquidity that guarantees the continuity of its operations optimally in the current macroeconomic environment.

The refinancing plan announced today by Ono involves the partial refinancing of the preferred and guaranteed credit (syndicated loan) of 3.6 billion euros subscribed by Cableuropa, and the commitment of new contributions amounting to 200 million by the current shareholders of ONO, of which 125 million will be disbursed immediately as super-subordinated debt, and the remaining 75 million will be pending certain liquidity tests. The plan facilitates the refinancing of Ono's debt over time by adjusting short-term maturities with the business's cash flow generation scheme, while providing an injection of liquidity to ONO that guarantees the continuity of its operations optimally in the current macroeconomic environment. The commitment to contribute 200 million euros is conditional on the entities that make up the banking syndicate accepting the refinancing proposal.

On January 19, 2010, in a meeting with the lenders in Madrid, Ono will present to the members of the banking syndicate a proposal for refinancing the maturities of the syndicated loan scheduled within the syndicated loan agreement until June 2013. The refinancing will be structured through a deferred refinancing line ("forward start facility") that will be incorporated as new tranches to the existing syndicated loan, and will be used to meet the syndicated debt maturities prior to June 2013.

Entities that participate in the new deferred refinancing line will be offered a commission of 100 basis points (bps), divided between a rectification commission of 25 bps and a participation commission in the deferred refinancing of 75 bps, and their margin will increase by 125 bps in the amounts allocated to the deferred refinancing line.

Ono will also request approval from the member entities of the banking syndicate for the issuance of new guaranteed preferential debt, directly at the Cableuropa level, or through a specific vehicle. This debt would be issued in the form of bonds or loans, and would be used to refinance existing debt within the €3.6 billion syndicated loan agreement. The company also intends to modify other financial conditions contemplated in the agreement to align them with its business plan.

Jonathan Cumming, CFO of Ono, commented that "this plan provides greater flexibility to manage its business in difficult market conditions, in which we maintain our decision to continue advancing in a line of growth. The capital contributed by our shareholders represents an important vote of confidence in the value of the business, and guarantees that Ono's liquidity position will not be affected by short-term refinancing. This is the first in a series of transactions that we intend to undertake to diversify our sources of financing and extend the maturity dates of the debt.”