TPG Telecom went into a trading halt to launch a $300 million share capital raising placement to partly pay down debt used to buy iiNet.
The September purchase of iiNet pushed TPG’s bank debt to $1.85 billion.
“The net proceeds of the placement will be used to partly repay the acquisition debt in order to support ongoing growth capex initiatives (including the recently announced significant fibre network build for Vodafone Hutchison Australia) and to minimise the company’s overall cost of funding,” the company told the ASX today.
The $1.56 billion takeover of iiNet by TPG Telecom created a company with 1.7 million customers, revenue of $2.3 billion and staff of about 5,200.
Those 1.7 million combined customers are retail fixed-line internet subscribers, a number which is second only to Telstra’s 3 million fixed broadband user base.
Macquarie Capital is acting as underwriter for the capital raising.
Shareholders will be able to buy up to $15,000 of the new ordinary shares. A price for the new share issue hasn’t been set.
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