New Sky credit facility announced

Shares in BSkyB rose in London trade on Friday as the satellite broadcaster announced it signed a new £600m revolving credit facility on Thursday.

The new facility brings the total amount of credit available to the company, which went cashflow-positive in 2002, to £800m. The new facility has enabled Sky to cancel a more hefty £750m facility due to expire in June next year, and reduce another £300m facility to £200m. Again, that will also expire in June 2004.

In an announcement to the London Stock Exchange, Sky said: "The new facility will provide the Group with an extension to the maturity profile of its existing financing arrangements and continued financial flexibility."

By midday trading on the LSE, Sky shares were up 13.5p at 645p.