Bloomberg News

Kabel Deutschland Lenders Consent to Extend $1 Billion of Loans

February 05, 2012

Feb. 3 (Bloomberg) -- Kabel Deutschland Holding AG, Germany’s largest cable television operator, obtained consent from lenders to extend the maturity of 782 million euros ($1 billion) of loans by three years, according to a statement today.

The company, known as KDG, asked creditors to push out portions of its existing term loan A and term loan C to March 2017 in exchange for a 15 basis-point fee, it said in a Jan. 24 statement.

The extended debt will pay initial interest of 3.5 percentage points more than Euro interbank offered rate, which will fall to 3.25 percentage points should the Munich-based company’s leverage ratio drop below two times, according to the January statement. A basis point is 0.01 percentage point.

KDG will also prepay 557 million euros of debt in the term loan A and C tranches using proceeds from a $750 million loan obtained last month, leaving 71 million euros of debt due in 2014, the company said today. Loans designated A are sold primarily to banks, while C credits are mainly bought by non- bank lenders.

Goldman Sachs Group Inc. coordinated the extension request, working with BNP Paribas SA, Deutsche Bank AG, JPMorgan Chase & Co., Morgan Stanley and Royal Bank of Scotland Group Plc. The debt was raised through KDG’s Kabel Deutschland Vertrieb und Service unit.

“The U.S. dollar-loan financing and euro-loan extension provides Kabel Deutschland with a long-dated capital structure and continues the successful series of actions we have taken to extend our maturity profile and diversify our sources of funding,” Chief Financial Officer Andreas Siemen said in today’s statement.

Last month, KDG boosted its new U.S. term loan by 50 percent to $750 million because of “significant” demand from investors. The seven-year loan was priced at 98.5 cents on the dollar and pays interest of 3.25 percentage points more than the London interbank offered rate, the company said in a Jan. 23 statement. The facility has a 1 percent Libor floor.

--Editors: Chapin Wright, Faris Khan

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net.

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


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