Published on 6/24/2004 in the Prospect News High Yield Daily.
New Issue: Kabel Deutschland sells upsized €750 million equivalent notes
By Paul A. Harris
St. Louis, June 24 - Kabel Deutschland GmbH priced an upsized €750 million equivalent offering of 10-year senior notes (B3/B/B+) in dollar and euro tranches on Thursday, according to market sources.
Deutsche Bank Securities and Morgan Stanley had the physical books for the Rule 144A/Regulation S issue, which has registration rights. Goldman Sachs & Co. and Citigroup were joint bookrunners.
The company sold $610 million at par to yield 10 5/8%. Price talk had been revised to 10 5/8% from the 10¾% area.
The company also sold €250 million at par to yield 10¾%. Price talk had been revised to 10¾% from the 11% area.
Proceeds will be used to help fund the purchase of former Deutsche Telekom assets Ish GmbH, Kabel BW and Iesy eKabel Hessen GmbH for €2.7 billion.
The notes are putable at par if all three acquisitions are not completed.
The issuer is the largest cable network operator in Europe.
The issue was upsized from €700 million equivalent.
| Issuer: | Kabel Deutschland GmbH
|
| Amount: | €750 million equivalent, increased from €700 million equivalent
|
| Maturity: | July 1, 2014
|
| Security description: | Senior notes
|
| Physical books: | Deutsche Bank Securities, Morgan Stanley
|
| Joint bookrunners: | Goldman Sachs & Co., Citigroup
|
| Put: | Putable at par if all three acquisitions are not completed
|
| Pricing date: | June 24
|
| Settlement date: | July 2
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Fitch: B+
|
|
|
| Dollar tranche
|
| Amount: | $610 million
|
| Coupon: | 10 5/8%
|
| Price: | Par
|
| Yield: | 10 5/8%
|
| Spread: | 600 basis points
|
| Call features: | Callable after July 1, 2009 at 105.313, 102.542, 101.771, par on or after July 1, 2012
|
| Equity clawback: | Until July 1, 2007 for 35% at 110.625
|
| Price talk: | 10 5/8%, revised from 10¾% area
|
|
|
| Euro tranche:
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| Amount: | €250 million
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| Coupon: | 10¾%
|
| Price: | Par
|
| Yield: | 10¾%
|
| Spread: | 650 basis points
|
| Call features: | Callable after July 1, 2009 at 105.375, 103.583, 101.792, par on or after July 1, 2012
|
| Equity clawback: | Until July 1, 2007 for 35% at 110.75
|
| Price talk: | 10¾%, revised from 11% area
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