German cable operator Kabel Deutschland is looking to amend and extend part of its senior secured credit facilities. Such a move would open up the possibility of paying dividends as of 2012, TelecomFinance understands.
The company said it wants more…
German cable operator Kabel Deutschland is looking to amend and extend part of its senior secured credit facilities. Such a move would open up the possibility of paying dividends as of 2012, TelecomFinance understands.
The company said it wants 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.
A spokesperson for the company declined to elaborate on the reasons behind this request, but it is thought that KDG is keen to pay dividends for 2011-2012. Any decision will be confirmed at the 2012 AGM.
In a statement today, the company said its deleveraging profile has remained strong following its IPO in March of this year. It claimed to be reaching quickly its target leverage range of 4.0x-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 November 19 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.