Bloomberg News

Coditel Said to Switch Financing to Loans After Bond Fails

November 15, 2011

(Adds bond sale in fourth paragraph)

Nov. 10 (Bloomberg) -- Coditel Holding SA switched financing for its leveraged buyout to loans after failing to sell 260 million euros ($354 million) of high-yield bonds in July, according to two people with direct knowledge of the deal.

Lenders will provide 140 million euros of senior loans and 100 million euros of junior-ranking mezzanine financing, said the people, who declined to be identified because the terms are private. A revolving credit will total less than 25 million euros. In addition, owners Apax Partners LLP, Deficom Group SA and Altice One agreed to increase the equity portion of the LBO financing by 20 million euros, the people said.

Coditel, spun off from France’s Numericable SAS in May, originally planned a bond sale in July managed by Morgan Stanley to repay loans used to fund its buyout.

The bond sale was pulled by the end of July after the main provider of cable TV, broadband and telephone services in the Benelux countries revised terms on the seven-year notes, which would have added a 60 million-euro portion of mezzanine debt, reducing the bond portion to 200 million euros, a person with knowledge of the deal said in July.

The new self-arranged financing is expected to close by the end of November, said the people.

Pascal Dormal, Coditel’s chief executive officer, didn’t reply to an e-mail seeking comment.

--With assistance from Stephen Morris in London. Editors: Chapin Wright, Faris Khan

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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