German cableco Kabel Deutschland (KDG) plans to issue an extra €200m (US$242.5m) of its senior secured notes due 2018, taking the total offering to €700m (US$848.8m), to help fund its proposed acquisition of Tele Columbus.
The notes, first issued in…
German cableco Kabel Deutschland (KDG) plans to issue an extra €200m (US$242.5m) of its senior secured notes due 2018, taking the total offering to €700m (US$848.8m), to help fund its proposed acquisition of Tele Columbus.
The notes, first issued in June 2011 and carrying a coupon of 6.5%, will replace the remaining €200m (US$242.5m) of a bridge facility KDG secured for its proposed acquisition of the Berlin-based level-four cableco, the company said in a statement.
The net proceeds will be used to help finance the planned buyout, announced on 21 May and subject to the approval of the Federal Cartel Office (FCO), or, if it does not go ahead, for general corporate purposes.
KDG has agreed to pay €603m (US$770m) plus accrued interest – a total €618m (US$789m) as of 31 December 2011 – for Tele Columbus. Announcing the proposed deal in May, the cableco said it expected the transaction to close in the first quarter of 2013.
