Eircom to sell EUR310m of bonds to repurchase debt

Ireland’s incumbent fixed line operator Eircom has announced it is looking to place EUR310 million (USD406 million) worth of senior secured notes, due in 2020, to help repurchase debts to lenders such as the Blackstone Group. SiliconRepublic notes that this is the telco’s first bond issue since it had almost EUR2.3 billion of debt wiped off its balance sheet last year. The company is looking to turn its fortunes around and is currently undertaking an ambitious programme to launch broadband via fibre-to-the-cabinet (FTTC), which will pass one million Irish homes by 31 December 2014, and will see end user access speeds increase to 50Mbps-70Mbps, using VDSL in the final loop. Further, Eircom is also planning to introduce quad-play services in 2013 and will begin trialling TV services in June with a view to a September launch, as well as aiming to launch 4G mobile in 2H13, its CEO Herb Hribar said.