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The move will allow the company to save roughly €15 million in annual interest repayments
United Group B.V., the Netherlands-based telecommunications and media operator, has completed a €1.5 billion bond refinancing package, a move it says reflects its strong potential for long-term growth.
The refinancing saw the company issue €1.13 billion of new floating rate notes (FRNs) and €355 million of new PIYC PIK (Pay-if-you-Can, Pay-in-Kind) Notes. This new debt matures in 2031 and 2033, respectively.
The proceeds used from the refinancing will pay off €480 million of existing FRNs due 2029, €650 million of FRNs due 2031, and €351 million of existing PIYC PIK notes due 2029.
As a result, the company expects to save €15 million of annual interest as well as an extension of the Group’s debt maturity profile.
“We are delighted with the outcome of this transaction. It has not just reduced our funding cost, but this was a further vote of confidence from our bond investors and builds on the positive momentum following our strong Q3 results,” said Stan Miller, CEO of United Group. “It reflects our disciplined approach to capital structure management and enhances our financial flexibility, allowing us to continue executing our strategy in our core EU markets, advancing our growth agenda, and creating long-term value for our stakeholders.”
This is the second round of bond refinancing in two months, with the company having reshuffled €400 million of debt in December last year, according to the company’s latest fiancial results.
Alongside debt refinancing, United Group has also been active in simplifying its portfolio in recent years, selling non-core infrastructure and assets to deleverage and focus on core markets.
Last year, the company agreed to sell Serbia Broadband (SBB) to Abu Dhabi-based e& for €825 million. It also sold NetTV Plus, SBB’s direct-to-home services, and sports rights to local rival Telekom Srbija for €652 million.
The operator continues to operate telecoms companies in Bulgaria, Croatia, Slovenia, Montenegro, Bosnia and Herzegovina, Greece, and North Macedonia.
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