Kabel Deutschland has signed a €650 million Senior Term Loan Facility that will provide funding for the group’s purchase of the 1.2 million subscriber Orion Network. The Orion purchase will cost KDG €585m and together with direct funding from the cable group will leave another €200m available for further purchases.
The loan will remain unfunded until KDG needs to draw upon it and will be the subject of a so-called ticking fee. It will be attached to the company’s existing €1,150 million Senior Term Loan.
The Orion deal is expected to close early in 2008, subject to regulatory approval.