Esat Telecom has told the US Securities & Exchange Commission (SEC) in New York that it plans to raise $65 million (€61 million) through an issue of shares and a further $182 million in senior debt, with the proceeds being used to offset the costs of the recent acquisition of PostGEM/Ireland-On Line.
After expenses, Esat expects to raise a net $235 million from the share and notes offering.
The filing with the SEC shows that Esat plans to sell about 3.3 million new shares, a move that will dilute existing investors' shareholdings by about 17 per cent.
The share issue is being underwritten by Credit Suisse First Boston (CSFB) and Davy Stockbrokers. The exact number of shares to be sold will be decided at the time of the pricing of the issue.
The $182 million issue of senior notes are due for repayment in 2009 and the issue is being lead-managed by CSFB, Chase Securities and TD Securities.
According to the filing, Esat intends to use the note issue to pay for the PostGem/IOL acquisition as well as repay an interim debt facility used to fund the acquisition.
Any funds left over from the share and notes offering would be used for a variety of purposes, including bids for additional telecommunications licences as well as other acquisitions and investments, the company said.
