Kabel Deutschland €400 million 10-year PIK floaters talked Euribor plus 850 bps, to price Friday

By Paul A. Harris

St. Louis, Dec. 2 - Price talk on Kabel Deutschland Holding GmbH & Co.'s €400 million offering of 10-year senior floating-rate PIK notes (B-) emerged Thursday at six-month Euribor plus 850 basis points at a discount price of 99.00, according to a market source.

The offering is expected to price on Friday.

Goldman Sachs & Co. and Deutsche Bank Securities are joint bookrunners for the Rule 144A/Regulation S issue, which is without registration rights.

The notes will be callable at par after one year, providing the issuer with a window to call the bonds if an IPO is completed. After the second year the call premium increases to 102, whereupon it declines annually to 101 and to par.

Proceeds will be used to pay a dividend to equity holders. The sponsors are Apax Partners, Goldman Sachs Capital and Providence Equity Partners.

The prospective issuer is a Bonn, Germany-based cable TV and internet services provider.

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