Kabel Deutschland Markets 400 Million Euro Loan to Repay High-Yield Bonds

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.

To contact the reporter on this story: Isabell Witt in London at iwitt4@bloomberg.net

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

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