Commentary & Deal Flow

Virgin Media O2 Vendor Financing Notes VII and VIII DAC approx EUR838m equivalent (EUR/GBP) (from benchmark size) 144A (3c7)/Reg S vendor financing notes two-part. Expect B2/B-/B+ (negative/stable/negative). Security: Receivables, Issuer cash and loans to VMIH, including the Excess Cash Facility, Interest Facility and Issue Date Facility (together, the “New VMO2 Facilities”). List Dublin. English law. 

- VFN VII EUR550m (from EUR500-550m and benchmark size) due 07/15/33 (7y), NC3 (07/15/29) (MWC B+50bp) (50%,25%,par). Via DB (B&D)/ING/MUFG jt physical books/Sabadell/BBVA/BNP/CA/Caixa/IMI/NatWest/RBC/StanChart jt books. No reg rights. Pays Jan 15 and July 15, starting 07/15/26. Denoms: 100kx1k. IPT: mid 7s. Price talk: 7.25%-7.50%. Launched: EUR550m at 7.50%.

- VFN VIII GBP250m (from GBP250m-300m and benchmark size) due 07/15/33 (7y), NC3 (07/15/29) (MWC G+50bp) (50%,25%,par). Via DB (B&D)IMI/NatWest jt physical books/Sabadell/BBVA/BNP/CA/Caiza/ING/MUFG/RBC/StanChart jt books. No reg rights. CoC at 101. Pays Jan 15 and July 15, starting 07/15/26. Denoms: 100kx1k. IPT: high 8s. Price talk: 8.75% area. Launched: GBP250m at 8.875%. 

Did investor call at 11am UKT 01/26. Books closed at 4:30pm UKT 01/27. Reconfirms due by 5:45pm 01/27. Pricing 01/27 UK afternoon. UOP: along with cash on hand, to fully or partially refinance the GBP900m 4.875% 07/15/28 callable at 100 (The US$500m VMEDO2 VFN VI notes priced 01/13/25 will be used to call its US$500m 5.00% 07/15/28 notes at 100). Owners: Liberty Global 50% and Telfonica 50%. Biz: an SPV of Virgin Media, which provides mobile, broadband and pay-TV services in the UK. HQ: London, UK.

Investor call registration: https://www.netroadshow.com/events/login/LE9zwo3gnwAnZOrK5C9SH3VThYfWyFdrMC8.