"BSkyB to raise $600m in bond issue"- analysis

The Financal Times article talks about the plans of the British Sky Broadkcasting wanting to raise six million dollar. They are planning a bond issue to institutional inventors to be able to refinance the dept pile it has made over the last years. BSkyB is issuing ten year bonds that are at an interest rate of 9.5 per cent; which shall be mature around November in 2018. One analyst talks about BSkyB will repay sooner, adn is looking to spend more money to get a deal with Tiscali; an Italian telecommunication group that seems to be struggeling. This would give BSkyB more flexibility and room to built up on more power. But BSkyB is already struggeling as they need to pay 800million pounds of maturing bond in February, and 600million dollaralso in February, and even 650million dollarin July. If the 450million pound deal would work out with the Tiscali telecommunication group, them together would be the larges provider for residential broadband in the UK. Before, the company had reached a net dept of almost two billion pounds, at the end of September. The article states that people with knowledge will find that this is a good deal to make for BSkyB, as the Tiscali telecommunication group atleast has 1.84 million customers and viewers. This is also a good twist turn agains the defefnce weapon, were Virgin Media is the offender, they are rolling out a broadband access to all customers that want a top speed rate of fifty megabits per second. How BSkyB's future looks like is not said, but the newspaper keeps up on the news.

http://www.ft.com/cms/s/0/9683b33a-b595-11dd-ab71-0000779fd18c.html?nclick_check=1