German network operator Tele Columbus has confirmed an agreement with its largest indirect shareholder and a group of financial creditors under its €462 million term loan facility (SFA) and its €650 million senior secured notes (SSNs).
Included is a €300 million equity capital contribution from Morgan Stanley to support its strategic plan to gradually convert its existing infrastructure, in consultation with the housing industry, into fibre-optic networks.
“With this milestone, Tele Columbus can continue the successful expansion of the network to fibre. We will tackle this together with our partners in the housing industry and in the interest of all our customers,” said CEO Markus Oswald.
In a trading update, Tele Columbus claimed a “strong” recent performance with revenue for the first 9 months of 2023 remaining stable at €333 million, reflecting a shift from TV to internet (including a continued shift of customers towards higher bandwidths) and telephony.
There was a record year-on-year growth for internet in the third quarter, with a third of new customers signing up for speeds of 400 mbps or more. There was a “moderate decline” of 7,000 TV subscriptions. However, 7,000 new customers were acquired for premium TV products on a year-on-year basis. The company also started a new hybrid platform, PŸUR TV, with a soft launch.
