A successful coverage of a convertible bond loan by Forthnet, worth 70 million euros, effectively completed the full refinance of the company’s loans, which means that the company has no liabilities as it has turned its debt into long-term debt with very favorable terms.
Panos Papadopoulos, chief executive of Forthnet, speaking to ANA said: “Completion of settling the refinance of our loan liabilities to long-term with very favorable terms is an extremely positive development as it safeguards the strategic value of the company and unlocks new prospects. Having a fully different balance sheet, we can focus undeterred to our business plans, to maintain our strategic position in the home entertainment and communication position, emphasizing on developing innovating services and maximizing our cost base”.
Telecommunication market officials said that Forthnet manageed, through this deal, to protect its value while gain the ability to perform better in a very competitive area, like the entertainment and communications, taking advantage of its exclusive Nova program. At the same time, Forthnet can play an increased role in a shaping new telecoms market, currently in a transition stage, with talks over new generation networks in full swing. This deal, however, was three years delayed. In Christmas 2013, the company oversubscribed by 2.2 times a share capital increase plan, worth 30 million euros, in cash. Forthnet, through its refinance agreement, has the ability to move more freely in the market. The company offers its services to almost one in five Greek households, it has an improved balance sheet and is now able to make the necessary moves to attract new investors in its business plans.