Kabel Deutschland to request step-up in covenant ratio under facility

By Jennifer Chiou

New York, May 6 - Kabel Deutschland GmbH announced that it will formally request on Monday a temporary increase of the senior net debt-to-EBITDA covenant under its senior credit facility. It has locked up approval or support from more than half of the required senior lenders, according to a company release.

The company is seeking approval from lenders holding at least 67% of the credit facility.

BNP Paribas, Deutsche Bank, Goldman Sachs, J.P. Morgan and Royal Bank of Scotland will be the bookrunners for the consent process.

The company will request that the ratio be increased to 4.25x from 3.5x as of June 30, then revert back to the original level by Dec. 31, 2012.

Consents to the requested amendments are required by May 30.

Kabel Deutschland said that the change improves its flexibility to issue new senior secured debt, which would allow for earlier redemption of its pay-in-kind loans due 2014.

The company is an Unterfoehring, Germany-based cable network operator.

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