RLPC-Numericable launches improved debt buyback offer-source

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 million) cash into the company and negating existing sponsor-held debt, the source said.

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.

Like many private equity-owned companies, Numericable has been struggling to meet the covenants on its 3.225 billion euro 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] (Reporting by Alasdair Reilly and Zaida Espana; Editing by Dan Lalor) ($1 = 0.6839 euro)