Pace gets funding for US acquisition

The Saltaire firm revealed plans to expand further in the home entertainment market in July, with a purchase that lifts it to third in the global 'home hub' or 'residential gateway' market.

At the time, Pace said it would use existing cash and bank financing to fund the purchase.

Net debt is expected to be about 200m after the acquisition.

Now Pace has signed up HSBC and Royal Bank of Scotland to provide fully underwritten facilities for the deal.

The facilities consist of a $300m (195m) term loan facility and a $150m (97m) multi-currency revolving credit facility. Pace simultaneously cancelled a 35m revolving facility with RBS.

Earlier this year the group became the world's biggest set top box maker. The 2Wire purchase will propel it beyond satellite and cable into the rapidly-growing telecoms market.

"It fits exactly the Pace strategy – it has been to put Pace at the heart of convergence for the digital home," said chief executive Neil Gaydon.

Residential gateways are home networking devices which allow consumers to connect technology such as high definition TV, digital video recorders, video on demand, digital photography, home CCTV and gaming consoles, to create a "convergent experience".

They allow users universal access to all their multimedia content, whether at home or away, over a broadband connection.

Pace shares closed up 1.40p at 206.90p.