&c1=usa&c2=(none)&c3=The+Guardian&c4=Media,Television+industry+(Media),Media+business,Business&c5=&c6=David+Teather&c7=2001_05_09){kind=small}
- The Guardian,
- Wednesday May 9 2001
NTL, the heavily indebted cable company, said yesterday that it intends to raise another $500m (£350m) from the bond markets to calm fears over the state of its balance sheet.
The junk bond issue should alleviate concerns that NTL is close to running out of money.
Speculation surrounding the company's finances have led to reports of a planned cull of jobs on top of the 1,300 outlined in November last year following NTL's merger with Cable & Wireless Communications.
Last month NTL received £270m from GE Capital. The new issue through investment bank Morgan Stanley was said to be opportunistic as NTL sensed that the debt markets were open to the company.
It rushed out highlights from its first-quarter results, due on Thursday, to support the issue.
The company reported revenues of £622m, a 6% increase on the fourth quarter. Ebitda (earnings before interest, tax, depreciation and amortisation) were 32% higher than the previous quarter at £65m. Margins improved from 11% to 14%.
Barclay Knapp, NTL chief executive, said the company ended the quarter with 757,300 digital subscribers and 7,800 new customers.
The cash calls will also ease the need to issue a separate tracking stock for NTL's broadcast business.
It had been planning such a move for the second quarter of this year to raise £250m but would have run into difficult market conditions.
Including the new round, NTL has raised almost £1.2bn so far this year from bonds and vendor financing, meeting a target set out in January for raising £900m.
That should leave the company on target to have £1.5bn in cash and surplus debt facilities by the end of the year - enough to see the business through to cash flow positive.
NTL which has debts of around £10bn is paying £710m in interest payments a year.
• Telewest yesterday turned the heat up on its rivals by offering a package of unlimited national and local telephone calls plus digital television for £25 a month.
The offer includes line rental and the basic digital TV package. Last week the cable operator cut the price of its broadband product Blueyonder, also to £25 a month.
