Stock rally tempts NTL board to up cash call

20 Oct 2003

An improvement in fortunes for NTL’s UK operations share stock has prompted its board to consider increasing its forthcoming rights issue from just over USD1 billion to close to USD1.4 billion. If utilised, the extra funds will be set aside to pay off more of its high interest debt. Under current arrangements, NTL is obliged to pay off a USD500 million ‘exit facility’ loan, as part of terms agreed with bondholders to enable it to emerge from Chapter 11 in January. The loan, though, carries a high 19% interest rate.

United Kingdom