Project description
and objectives:
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Syndicated debt facility to TES Media and Intercable CZ, respectively the third and second largest cable TV operators in the Czech Republic.
The EBRD's involvement will facilitate the acquisition of Intercable CZ, the second largest Czech cable TV operator, by TES Media shareholders, and support further development of the merged entity. The proceeds will be used to fund the acquisition and refinance the existing debt facility and the grace period will allow the companies’ network development.
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Transition impact:
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The project would support the consolidation process in the Czech cable TV industry and foster the emergence of advanced and integrated telecommunications services. In particular, the Bank’s investment will help promote competition and stimulate customer choice in the Czech Internet market.
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The client:
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TES Media, s.r.o. is the third largest cable TV operator in the Czech Republic operating since 1991. The company is majority owned by private equity investors; Baring Communications Equity and JP Morgan Partners. Intercable CZ, s.r.o. is the second largest cable TV operator in the Czech Republic, currently indirectly owned by the Dutch telecoms operator KPN.
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EBRD finance:
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Local currency loan of US$ 10 million (€10.1 million) equivalent. EBRD financing will be a part of US$ 35 million syndicated senior debt facility maturing in 2008 and 2009 provided in Czech Koruna. The lead arrangers and underwriters are Bank Austria, BNP Paribas, EBRD and JP Morgan plc.
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Total project cost:
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US$ 35 million (€35.3 million equivalent).
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Environmental impact:
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The project has been screened B/0 by the Environmental Department requiring an environmental analysis of the proposed project. The analysis has been carried out on the basis of TES’ response to the EBRD's telecommunications & media projects questionnaire. There are unlikely to be any significant environmental issues associated with the project. The Sponsor has all necessary permits required for their operations in place and complies with all relevant Czech environmental, health and safety standards and requirements. The Analysis also confirmed that construction plans, including siting and disposal of potentially hazardous materials, worker health and safety, will be undertaken in accordance with relevant EU, national and local legal requirements.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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David Ryba, Operation Leader: rybad@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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