Smart YuRoE Broadband Limited (SYB) formally announced today that it had completed a €65 million refinancing package of Smart Telecom ahead of the delisting of the company from the AIM at the end of this month.
SYB (formerly Calally), which is controlled by Brendan Murtagh, also announced that it will benefit from full ownership of the T50 Network in Dublin after Mr Murtagh agreed to merge his T50 telecommunications interests into SYB.
Under the deal €50 million in loan notes will be issued to a syndicate of international investors, including a number of US and European institutions. The remainder of the funding (€15 million) relates to the conversion of existing debt by a group of SYB shareholders into preference shares in SYB.
Mr Murtagh, majority shareholder in SYB, has agreed to merge his telecommunications interests by contributing the Dublin T50 fibre network to SYB in exchange for additional preference shares. The comapany stated that the T50 network adds a further €25 million to the Smart Balance Sheet.
John F Riordan, chairman and chief executive officer of SYB, said in a statement this morning that the company's "new streamlined and highly focused business model leaves Smart Telecom well positioned for a profitable future. Our emphasis will be on providing customers with superior service offerings through Smart's Next Generation Network".
Smart Telecom focuses on the delivery of data, broadband and Voice over Internet Protocol (VoIP) services to the residential and business sectors. The total value of these markets has been estimated at €2.4 billion by ComReg, the communications regulator.