RLPC-Unity Media tidies up debt docs to allow repayment

LONDON, Nov 10 (Reuters) - IPO candidate German cable firm Unitymedia is tidying up its debt documentation to make it easier to repay debt, two bankers said on Tuesday.

Unitymedia launched a technical amendment on Tuesday to its intercreditor agreements, which govern the rights and ranking of each type of creditor or debt provider, the company said in a statement.

The amendment will make it easier for Unitymedia to pay dividends and repay debt, the bankers said.

Unitymedia is planning a 500 million euro initial public offering (IPO) in December, Reuters reported last week [ID:nL3638057].

"Unitymedia is having a background tidy up before any future capital markets activity," one of the bankers said.

The amendment covers a 1.3 billion euro floating rate note, a 130 million euro revolving credit and a 100 million euro term loan, but does not include the company's subordinated note, the bankers said.

The individual credit agreements will not be changed, but the intercreditor agreements will be aligned to make it easier for Unitymedia to repay debt and pay dividends, they added.

Investors will be paid 0.25 percent of the principal of their holdings to accept the technical changes if they reply by the early consent deadline of Nov. 18, the company said. Several European companies are busy amending debt agreements to allow IPO issues. French care home group Medica has already secured the necessary agreement from lenders to use IPO proceeds to repay mezzanine debt, and fund manager Gartmore is also in the market with a loan amendment.

(Reporting by Tessa Walsh; Editing by David Cowell)