Sky looking to raise cash

The satellite broadcaster British Sky Broadcasting is planning to raise additional funds through a bond issue. This will be directed at institutions and other major investors.

BSkyB are looking to raise around £400 million from this bond issue, which will assist in refinancing the company’s debt, and give them the cash they need in order to look at further acquisitions.

Just recently BSkyB have been linked with the purchase of the UK division of Tiscali and with their current debt arrangement coming up in February and July of next year, this cash injection would put the business into a viable financial position.

These bonds will last for ten years and will pay 9.5 per cent interest when they mature in November 2018.

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