Bloomberg News

Com Hem Said to Boost Interest on Loans for BC Partners Buyout

September 12, 2011

Sept. 12 (Bloomberg) -- BC Partners Ltd. offered lenders higher interest margins and scaled back a planned high-yield bond for its buyout of Swedish cable company Com Hem AB, according to a person with knowledge of the situation.

The changes affect short-term debt and term loans that are part of the 7.1 billion kronor ($1.1 billion) financing, said the person, who didn’t want to be identified because the transaction is private.

Com Hem increased the interest margin on a 6.5-year term loan B by 25 basis points to 500 basis points, said the person. The euro-denominated portion, for at least 250 million euros, may be priced at 98 percent of face value, said the person. A basis point is 0.01 percentage point.

A short-term bridge loan to unsecured bonds has been reduced to 3.19 billion kronor from 4.05 billion kronor. The difference will be replaced by a 865 million-kronor bridge to eight-year pay-in-kind debt, the person said.

As a result, Com Hem will reduce the amount of debt serviced with cash to 5.9 times earnings before interest, tax, depreciation and amortization, compared with 6.4 times proposed in July, the person said.

A spokeswoman for London-based BC Partners who didn’t want to be identified declined to comment on the debt financing.

BC Partners said July 21 it agreed to buy Stockholm-based cable company Com Hem from U.S. buyout firms Carlyle Group and Providence Equity Partners.

--Editors: Cecile Gutscher, Chapin Wright

To contact the reporter on this story: Patricia Kuo in London at pkuo2@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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