German cable operator Kabel Deutschland (KDG) has won the support of 94% of its investors to amend and extend the terms of some of its credit facilities, according to a company statement.
Such a move would open up the possibility of paying dividends as…
German cable operator Kabel Deutschland (KDG) has won the support of 94% of its investors to amend and extend the terms of some of its credit facilities, according to a company statement.
Such a move would open up the possibility of paying dividends as of 2012, as previously reported by TelecomFinance. The company said it wanted more flexibility in incurring senior debt, redeeming junior debt and paying dividends to help manage its cost of capital.
In addition, KDG is talking to its revolving credit facility and term loan A lenders to extend debt commitments to March 2014.
In the meantime, KDG may be looking to issue a high-yield bond before the end of the year in order to simplify its debt structure and refinance expensive funding, media reports wrote.
In a separate statement, the company said its deleveraging profile has remained strong following its IPO in March of this year. It claimed to be quickly reaching its target leverage range of 4x-3.5x debt to equity. The same statement revealed that around 43% of senior facility holders by value have already signalled support for the amendment.
Kabel has until 19 November to register full consent for the move. A source close to the company said it was confident of getting approval for the plan following initial conversations with lenders.
For the first half of its fiscal year, ended 30 September, KDG posted a 6.8% increase in revenues to E785.8m, on a year-on-year basis, and adjusted EBIDTA at E355.2m, a 10.4% rise.
