Pace secures funding for acquisition

SET top box maker Pace has secured funding with two banks to help fund its £308m acquisition of a United States broadband technology firm.

By The Newsroom

Published 1st Sep 2010, 10:35 BST

The Saltaire-based company, which earlier this year claimed top spot in the global set top box market, believes the deal for 2Wire will enable it to spread its wings further in the home entertainment market. The purchase, which will be part funded by HSBC Bank and The Royal Bank of Scotland, will extend its reach from cable and satellite into the telecoms market.

The banking agreement consists of fully underwritten facilities - a $300m (194.7m) term loan facility and a $150m (97.5m) multicurrency revolving credit facility.

The acquisition remains conditional pending regulatory consents and Pace shareholder approval at a general meeting.

The company has at the same time cancelled the 35m revolving facility with The Royal Bank of Scotland.