Lenders are asked to commit to the seven-year term portion H by April 12 which will repay a term portion D due in December 2016 and term slice G expiring in March 2017, the Unterfoehring- based company said today in a statement.
Kabel Deutschland is offering to pay interest at 300 basis points more than the euro interbank offered rate for debt for Kabel Deutschland Vertrieb und Service GmbH, according to the statement. A basis point is 0.01 percentage point.
The company fixed the cost of the 400 million-euro term loan term loan D at 6.07 percent through an interest-hedging arrangement in 2011, according to its earnings report on Feb. 20. The existing term loan G pays interest at 350 basis points more than Euribor, according to the report.
Kabel Deutschland had 3.4 billion euros of total debt at the end of 2012 and 540 million euros of cash, according to the earnings report.
The company’s net debt was 3.4 times its earnings before interest, tax, depreciation and amortization at the end of December, within its target range of 3 times to 3.5 times by the end of March 2013, according to the earnings report.
BNP Paribas SA and Deutsche Bank AG are coordinating the transaction, with ING Groep NV, Morgan Stanley, and Royal Bank of Scotland Group Plc also arranging the deal, according to the statement. The banks also agreed to provide 270 million euros of credit line due in March 2019.
The company is offering six-month soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the term loan H during the first six months, according to the statement.
The term loan H may be priced at 99.75 cents to 100 cents on the euro, according to a person with knowledge of the matter, who asked not to be identified because the information isn’t public.
The arranging banks plan to distribute the loan on April 15, before funding on April 30, Kabel Deutschland said.
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