Kabel Deutschland announces financing arrangements for subscriber acquisitions
Unterfoehring, October 30, 2007 – Kabel Deutschland, Germany’s largest cable operator, has signed a €650 million Senior Term Loan Facility (the “Senior Add-on Facility” or the “Facility”) which will rank pari-passu with the Company’s existing €1,150 million Senior Term Loan.
The Senior Add-on Facility will provide funding for the previously announced acquisition of 1.2 million cable subscribers from the Orion Group for €585 million and, together with direct funding from KDG, will fund potential additional acquisitions of up to another 200 million Euros.
The Senior Add-on Facility matures in March 2013 and carries a coupon of EURIBOR + 325bps. The Facility will be unfunded for a period of time until the Acquisitions are completed, and any or all of the Facility can be cancelled at any time. During this unfunded period the Facility will pay a ticking fee. The Facility will have the same financial covenants as the existing Senior Term Loan.
The Company expects to meet all current covenants under its existing financing obligations. Closing of the Orion Group asset purchase is anticipated for spring 2008 after FCO clearance.
About Kabel Deutschland
Kabel Deutschland (KD), Germany’s largest cable operator, offers its customers digital, high definition (HD) and analogue TV, Pay TV services, broadband Internet (up to 100 Mbit/s) and fixed line phone services via cable as well as mobile services in cooperation with an industry partner. The publicly listed company (MDax) operates the cable networks in 13 German federal states and supplies its services to approximately 8.9 million connected households. KD offers an open digital TV platform for all program providers. As per end of fiscal year 2009/2010, Kabel Deutschland had approximately 2,600 employees. In fiscal year 2009/2010 (12 months ended March 31, 2010), the company reported revenues of €1,502 million and Adjusted EBITDA of €659 million.
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Press Releases 2007