Simpson Thacher represented lenders on two major European cable acquisitions announced within days of each other at the beginning of October. Total financing committed by the lenders represented by the firm on the two transactions was approximately $3.9 billion.
NTL plc, the UK's largest cable company and second leading supplier of broadband services, announced on October 3, 2005, that it had agreed to acquire Telewest plc, a UK broadband and media group, in a transaction valued at $6 billion. The merger will create the UK's second largest communications company and leading "triple play" service provider. Simpson Thacher represented a bank group including Deutsche Bank, J.P. Morgan, Royal Bank of Scotland and Goldman Sachs that committed debt financing for the acquisition in the amount of $3.2 billion. The transaction is expected to close in the first quarter of 2006. Simpson Thacher lawyers working on the transaction included Hartwell Hylton, Walt Looney, Nick Shaw, Mariya Vinnik, Godric Shoesmith, Meredith Jones and Jennifer Marsh.
On September 30, 2005, Liberty Global, Inc. agreed to acquire Switzerland's largest broadband cable provider, Cablecom Holdings AG., for $2.186 billion. Liberty Global is the largest broadband cable operator outside the US in terms of number of subscribers. Simpson Thacher represented Credit Suisse, Deutsche Bank and J.P. Morgan as lead arrangers for a "pay-in-kind" loan totaling $662 million. The financing was unusual in taking the form of a loan agreement, but using bond covenants and other bond-like terms, and targeting high yield bond investors as well as banks in its syndication. The loan was funded into escrow on October 7, 2005, and the acquisition is expected to close later this month. Simpson Thacher lawyers working on the transaction included Walt Looney, Euan Gorrie, Susanna Berger, Gautam Narasimhan, Harald Zeiter, Meredith Jones and Jennifer Marsh.