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Bite raises €300 mln to help finance buyout from TDC

Bite Group, a mobile phone company with customers in Latvia and Lithuania, raised €300 mln ($395 mln) in a sale of floating-rate bonds to help pay for its buyout from TDC A/S in Copenhagen.

Bite, based in Lithuania, sold €190 million of senior secured debt maturing in 2014, €5 million more than it initially planned, according to an e-mailed summary from bond underwriter Deutsche Bank AG. It also sold €110 million of senior subordinated bonds due in 2017, €5 million less than planned, the bank said. The secured debt will pay interest of 3.5 percentage points more than the euro interbank offered rate, or Euribor. The subordinated notes will pay interest of 6.5 to 6.75 percentage points over Euribor. Both bonds were priced lowest of the yield range proposed to investors. The secured notes were rated B3, six levels below investment grade, by Moody's Investors Service, and a step higher at B by Standard & Poor's. The subordinated debt was assigned a Caa2 rating, two levels below the secured notes, by Moody's, and CCC+ by S&P, according to Deutsche Bank. (Bloomberg)