German cable operator Primacom has announced that the refinancing of the company, as agreed at the beginning of November 2010, was finalised on January 6, 2011.
The refinancing enables Primacom to invest almost €100 million over the next four years to develop the business further. Under the new financial structure, the company received an immediate cash injection of €30 million investment and could reduce its existing debt by €155 million. A further reduction in liabilities to the amount of €60 million is planned for the next 3.5 years.
As part of the restructuring, Luxembourg based Medfort SAR took Primacom over in July 2010, for an undisclosed amount, from Perseus SA, a company controlled by investors Alcentra, Avenue Capital Group, ING and Tennenbaum Capital Partners.
Primacom CEO, Michael Dorn, said in a statement: “Closing of the refinancing is an important milestone for Primacom. The company therefore has a stable and sustainable capital structure on which to build our business long-term, the acquisition of Primacom by new investors. As a long-term commitment to see to it that Primacom again will be in the best position in the market and therefore will be able to improve profitability and achieve attractive profits over a period of 3 – 5 years.”
