RLPC-UPDATE 1-Numericable improves debt buyback proposal-source

* Owners to inject 50 million euros of cash-source

* Says sponsor-held debt to be disenfranchised

* Says final consent deadline Nov. 2

(Adds pricing details, background)

LONDON, Oct 5 (Reuters) - French cable television operator Numericable has launched an improved loan covenant reset and debt buyback proposal, a banking source close to the situation said on Monday.

Terms on the offer were sweetened after an original proposal met with resistance from lenders who wanted an equity injection from the owners of the business.

The new proposals involve Numericable's private equity owners -- Cinven [CINV.UL], Carlyle Group [CYL.UL] and Altice -- deleveraging the company by injecting 50 million euros ($73.11 million) of cash into the company and negating existing sponsor-held debt, the source said.

The cash injection is split between 20 million euros held in a holding company to be funnelled to the Numericable business and a direct contribution of 30 million euros.

Indirectly held sponsor debt of 180 million euros will be disenfranchised -- meaning the sponsors cannot cancel it or repay it, but it is effectively negated -- the source said.

The source said that other changes include asking the capital expenditure lenders to defer repayments to help with liquidity in coming years.

Margins on Numericable's 3.225 billion euro leveraged loan will be increased by 75 basis points (bps) -- split 25 bps cash pay and 50 bps payment-in-kind -- across the financing, the source said. The original proposal would have seen margins increased based on a leverage grid up to 100 bps but the new levels are fixed.

An upfront fee of 50 bps is also on offer -- split between a 25 bps early bird fee and a 25 bps consent fee, according to the source.

The amendment requires two thirds approval from the loan syndicate. Early bird approvals are expected by Oct. 21, with a final deadline of Nov. 2, the source also said.

Like many private equity-owned companies, Numericable has been struggling to meet the covenants on its leveraged loan after softer earnings and lower earnings before interest, tax, depreciation and amortisation (EBITDA).

The company asked banks to give it more headroom on its leverage and interest cover covenants in early September, starting at 10 percent and rising to 20 percent, a source said at the time [ID:nL8424221]. ($1=.6839 Euro) (Reporting by Alasdair Reilly & Zaida Espana; editing by Dan Lalor and Karen Foster)