TEXT-S&P:KDH ratings unaffected by term loan repricing

Tue Jan 22, 2013 4:28am EST

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(The following statement was released by the rating agency)

Jan 22 - Standard & Poor's Ratings Services said today that its 'BB-' long-term corporate credit rating on German cable network operator Kabel Deutschland Holding AG (KDH) and its issue ratings on the group's debt are unaffected by the upcoming repricing of its $750 million term loan F due February 2019.

We understand that commitments from lenders under the current term loan F that consent to the change will be transferred into a new term loan F1. If existing lenders do not consent, KDH will either repay their commitments or replace them with those of new lenders. We understand that KDH does not intend to increase the size of the term loan F1 above $750 million. The new term loan F1 is expected to be priced with a lower margin than that on the existing term loan F and will have the same maturity as the existing loan. As a result, we expect KDH to generate modest annual interest savings, but we do not consider this transaction to have a material impact on the group's free cash flow generation and credit metrics.

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