Kabel Deutschland (KDG), Germany’s largest cable company, has announced it hired Deutsche Bank, Goldman Sachs, ING and Morgan Stanley to arrange the financing aimed at repaying its PIK loans.
This announcement comes a few days after KDG stated that more…
Kabel Deutschland (KDG), Germany’s largest cable company, has announced it hired Deutsche Bank, Goldman Sachs, ING and Morgan Stanley to arrange the financing aimed at repaying its PIK loans.
This announcement comes a few days after KDG stated that more than two-thirds of senior lenders approved the requested amendment to its senior credit facilities, allowing it to start prepaying PIK loans.
In early May, KDG said it was planning to request that its senior net debt to EBIDTA covenant be temporarily increased from 3.5x to 4.25x as of 30 June 2011 and until 31 December 2012.
The move is aimed at improving the company’s flexibility to issue more debt, which will be used to prepay E200m of its 2014 PIK loans.
The company needed 67% of required senior lenders to approve the proposed amendment. BNP Paribas, Deutsche Bank, Goldman Sachs, JPMorgan and RBS acted as bookrunners for the consent process.
