Liberty Global’s Unitymedia has commenced a debt exchange offer for all outstanding Kabel BW (KBW) debt, following the successful acquisition of KBW by Liberty late last year.
If successful, the debt exchange could be followed by a merger of the two…
Liberty Global’s Unitymedia has commenced a debt exchange offer for all outstanding Kabel BW (KBW) debt, following the successful acquisition of KBW by Liberty late last year.
If successful, the debt exchange could be followed by a merger of the two German subsidiaries.
Under the exchange offer, all outstanding €800m 7½% KBW Senior Secured Notes due 2019 and all outstanding $500m 7½% KBW Senior Secured Notes due 2019 as well as all €420m KBW Senior Secured Floating Rate Notes due 2018 would be exchanged with new notes to be issued by Unitymedia.
All outstanding €680m 9½% KBW Senior Notes due 2021 of UPC Germany HoldCo 1 are also subject to a similar exchange offer.
The exchange offers expire on 30 April, and provided that at least 50% of creditors agree to swap their shares, Unitymedia intends to buy out all other bond holders in a next step, according to a Unitymedia spokesperson.
Following the exchange all old and new Unitymedia bonds will be held by a single Unitymedia subsidiary.
“If the bondholders agree to the exchange and the KBW bonds are exchanged and/or the remainder redeemed….then Unitymedia might buy the KBW assets,” a Liberty Global spokesperson said.
