Kabel Deutschland Holding AG, started syndicating a six-year 400 million-euro ($535 million) term loan to repay its junior ranking senior notes.
Germany’s largest cable-television operator will repay 226 million euros of its 10.75 percent notes due in 2014 and $145 million of its 10.625 percent notes due in 2014, the Unterfoehring, Germany-based company said in a statement. This will result in savings of about 20 million euros per year.
Kabel Deutschland said on Dec. 3 it completed an amendment to its 2 billion-euro senior credit facility which will allow it to increase senior debt, cut junior-ranked borrowings and make dividend payments. It already agreed to repay $465 million of its 10.625 percent bonds due 2014 by Dec. 17.
The new loan will pay interest at 4 percentage points over benchmark rates, two people familiar with the transaction said. It will be offered at a discount of 99.5 of face value.
A call with potential investors will take place on Dec. 7 and the company expects commitments for the new loan by Dec. 10, said the people, who didn’t want to be identified because the deal is private.
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