Kabel Deutschland Holding AG got 600 million euros ($767 million) of short-term debt to fund its acquisition of Tele Columbus Group, the German cable television provider owned by creditors.
Morgan Stanley, Deutsche Bank AG and Goldman Sachs Group Inc. provided the 12-month bridge financing that will be rolled into long-term debt if it’s not replaced before maturity, Unterfoehring, Germany-based Kabel Deutschland said on its website.
Kabel Deutschland, Germany’s biggest cable company, said today it agreed to buy Berlin-based Tele Columbus for 603 million euros plus accrued interest.
Tele Columbus would add about 1.7 million new customers to Kabel Deutschland, Germany’s biggest cable company.
Kabel Deutschland said its goal to keep debt at between 3 and 3.5 times its earnings before interest, tax, depreciation and amortization won’t be affected by the transaction, which is subject to antitrust approval in Germany.