Kabel Deutschland (KDG) is planning a new loan of at least €600m under an existing credit agreement.
Germany’s largest cableco announced today that the proceeds of the new term loan H will be used to help prepay existing term loan D and G…
Kabel Deutschland (KDG) is planning a new loan of at least €600m under an existing credit agreement.
Germany’s largest cableco announced today that the proceeds of the new term loan H will be used to help prepay existing term loan D and G tranches.
The new loan is expected to have a seven-year maturity and a margin of 300 basis points over Euribor.
That existing term loan D currently has a size of €400m, while term loan G stands at €782m, according to a KDG spokesperson.
The cableco wants to fully repay the two outstanding tranches, and plans to raise at least €600m for that purpose from the new term loan H. The remainder will be repaid form other available resources, mainly cash at hand.
KDG subsidiary Kabel Deutschland Vertrieb und Service (KDVS) has asked existing and new lenders to submit commitments to the new loan by 12 April.
BNP Paribas and Deutsche Bank are joint coordinators and bookrunning mandated lead arrangers for the transaction. ING, Morgan Stanley and The Royal Bank of Scotland are also bookrunning MLAs.
KDG has made numerous changes to its capital structure since entering into an agreement to acquire smaller rival Tele Columbus in May last year for a total €618m (US$789m). The German antitrust regular blocked the takeover in March after KDG refused to further improve previously-submitted remedies. The cableco has since appealed the FCO decision.
In February, KDG re-priced a US$750m senior-secured loan due 2019, issuing it as a new tranche – term loan F1 – under existing credit facilities.
KDG reported revenues of €465m for the quarter ended 31 December 2012, up 8.8% year-on-year. EBITDA was up 10.2% to €220m, while net debt stood at €2.88bn. Announcing the results in February, the cableco said it planned to “pull forward investments to further accelerate growth”.
