By Paul A. Harris
St. Louis, Dec. 3 - Kabel Deutschland (holding company) priced €400 million of 10-year senior floating rate PIK notes at 99.00 on Friday, according to an informed source.
The coupon is Euribor plus 850 basis points, and steps up 200 basis points after Dec. 15, 2007 if consolidated leverage is greater than 3.5-times at KDG level. The coupon is PIK for life.
The deal priced right on top of price talk.
Goldman Sachs & Co. and Deutsche Bank Securities ran the books for the Rule 144A/Regulation S issue.
The notes become callable at par after Dec. 15, 2005 giving the issuer a window to call the bonds if an IPO is completed. On Dec. 15, 2006 the call premium increases to 102, then declines ratably to par.
Proceeds will be used to fund a dividend to equity holders. The sponsors are Apax Partners, Goldman Sachs Capital and Providence Equity Partners.
The issuer is a Bonn, Germany-based cable TV and internet services provider.
| Issuer: | Kabel Deutschland (holding company)
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| Amount: | €400 million
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| Maturity: | Dec. 15, 2014
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| Security description: | Senior floating-rate PIK notes (PIK for life)
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| Bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities
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| Coupon: | Euribor plus 850 basis points
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| Step up: | Coupon steps up 200 basis points after Dec. 15, 2007 if consolidated leverage is greater than 3.5-times at KDG level
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| Price: | 99.00
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| Call features: | Non-callable until Dec. 15, 2005, then callable at par, callable on Dec. 15, 2006 at 102, 101, par on or after Dec. 15, 2008
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| Pricing date: | Dec. 3
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| Settlement date: | Dec. 10
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| Ratings: | Not rated
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| Price talk: | Euribor plus 850 basis points at a price of 99.00
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