Rlpc kabel deutschland raises 1 bln euro new term loan

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German cable TV operator Kabel Deutschland has raised 1 billion euros ($1.3 billion) under its existing credit agreement, to repay existing debt, the company said on Monday. The terms of the new loan are better than the debt being repaid. The new term loan far exceeded the minimum 600 million euros targeted by Kabel Deutschland after it proved to be popular with new and current lenders during syndication. Kabel Deutschland adds to the growing number of companies taking advantage of positive loan market conditions and excess liquidity to improve debt terms as investors are more willing to do deals following a dearth of European leveraged buyout (LBO) activity this year and last year.

BNP Paribas and Deutsche Bank were joint coordinators on Kabel Deutschland's new financing, together with bookrunning mandated lead arrangers ING Bank, Morgan Stanley and Royal Bank of Scotland. The 1 billion euro term loan H (TLH) matures in 2020 and pays an interest margin of 275 basis points over Euribor. It was offered with a 99.5 percent Original Issue Discount.

The TLH will be used, along with available liquidity, to repay Kabel Deutschland's existing 400 million euro term loan D that pays 400 bps over Euribor and 780 million euro term loan G that pays 350 bps Euribor. In addition, maturity of up to 270 million euros of the company's revolving credit facilities has been extended to March 2019. The existing revolving credit facilities mature between 2014 and 2017.

In January, Kabel Deutschland completed a $750 million, six-year term loan F1, repricing its existing term loan F tranche. The term loan F1 paid 275 bps over LIBOR with a 0.75 percent LIBOR floor and 101 soft call protection. Kabel Deutschland operates cable networks in 13 German federal states and supplies its services to approximately 8.5 million households. It employed around 3,500 employees as of November 2012. The company reported revenues of 1.7 billion euros and an adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) of 795 million euros during the year to the end of March 2012. ($1 = 0.7635 euros)