German cable operator Kabel Deutschland (KDG) is marketing a six-year E400m term loan to repay its remaining 2014 senior notes.
BNP Paribas and JP Morgan are the underwriters of the new loan and syndication is expected to start today, according to a…
German cable operator Kabel Deutschland (KDG) is marketing a six-year E400m term loan to repay its remaining 2014 senior notes.
BNP Paribas and JP Morgan are the underwriters of the new loan and syndication is expected to start today, according to a statement.
It is understood that the new loan will pay interest at 400bp over benchmark rates and will be offered at a discount of 99.5 of face value.
The proceeds of the loan are expected to be used to repay E226m of its 10.75% notes due in 2014 and US$145m of its 10.625% notes due in 2014. In the statement, the company explained that these repayments will result in savings of about E20m per year.
In the meantime, KDG said it fulfilled the conditions for the redemption of US$465m of the 10.625% US$610m notes, due 2014, by 14 December 2010. Overall, the retirement of all 2014 senior notes is expected to generate about E50m in savings per year.
The company also completed the amend and extend of its senior credit facility after receiving 97% favourable consents from shareholders. This move will allow it to increase senior debt, cut junior-ranked borrowings and make dividend payments.
In addition, KDG received commitments to extend approximately E224m of its revolving credit facility and approximately E60m of its term loan A to March 2014.
