SYB announces refinancing package for Smart Telecom

Smart YuRoE Broadband Limited (SYB - formerly Calally) today announced that it has completed a refinancing package of the Smart Telecom group ahead of taking the company private on June 29, 2007.

SYB also announced that it will benefit from full ownership of the T50 Network in Dublin after Brendan Murtagh agreed to merge his T50 telecommunications interests into SYB

The refinancing includes the successful issuance of €50m in loan notes to an international syndicate of institutional investors, including a number of US and European institutions (who have a strategic focus on the international telecommunications sector).

In May Bank of Ireland’s Kernel Capital Partners Private Equity Fund invested €2.5m in the company. Davy Corporate Finance led the transaction with sales support provided by the Davy Capital Markets division.

The remainder of the funding (€15m) relates to the conversion of existing debt by a group of SYB shareholders into preference shares in SYB.

Brendan Murtagh, majority shareholder in SYB has also decided to merge his telecommunications interests by contributing the Dublin T50 fibre network to SYB in exchange for additional preference shares. Based on a conservative valuation, the T50 adds a further €25m asset to the Smart Balance Sheet.