Cableco Kabel Deutschland (KDG) is 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…
Cableco Kabel Deutschland (KDG) is 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 its 2014 PIK loans.
According to the company, final consent is expected by 30 May 2011. So far, more than 50% of required senior lenders support the proposed amendment. The company needs that figure to reach 67% for the amendment to be approved.
BNP Paribas, Deutsche Bank, Goldman Sachs, JPMorgan and RBS will act as bookrunners for the consent process, the company explained.
Last month. KDG announced it was looking to prepay E200m of its outstanding 2014 PIK loans. As of 31 December 2010, KDG still had about E717m outstanding on its PIK loan.
Existing liquidity and a draw under its revolving credit facility will be used to fund the prepayment.
In May 2006, KDG entered a new 8.5-year PIK loan facility of E480m to finance the repayment of previous PIK notes.
