Kabel Deutschland (KDG) plans to re-price its US$750m senior-secured, floating-rate loan.
The German cableco said today that it is asking lenders to roll their commitments into a new US$750m loan, which will be issued as a new tranche under the existing…
Kabel Deutschland (KDG) plans to re-price its US$750m senior-secured, floating-rate loan.
The German cableco said today that it is asking lenders to roll their commitments into a new US$750m loan, which will be issued as a new tranche under the existing senior credit facilities. The company is also inviting lenders to increase their commitments under the new ‘Term Loan F1’.
The maturity date will stay the same, at February 2019, but the 101% soft call protection will be reset for 12 months.
KDG intends to discuss the proposed margin and Libor floor during a lender call tomorrow (23 January).
The company secured the original US$750m loan in January 2012.
KDG has asked lenders to respond to its re-pricing request by 28 January at the latest, aiming to settle and repay the original loan on 5 February.
Goldman Sachs is the bookrunning mandated lead arranger for Term Loan F1.
Since entering into a purchase agreement to acquire Tele Columbus in May last year for €603m (US$770m) plus accrued interest – a total €618m (US$789m) – KDG has made several changes to its capital structure. The acquisition has yet to be approved by the Federal Cartel Office.
In June, the company announced plans to launch €300m (US$378.8m) of senior notes to replace part of the €600m (US$757.5m) bridge facility it secured to fund the acquisition.
In today’s release, KDG highlighted that it continues to deliver high EBITDA growth and cash generation, resulting in a 0.4x year-on-year decrease in net debt to LQA EBITDA to 3.2x at the end of the third quarter of 2012.
