11/12/2017
  • Reduction of Term Loan B margin by 25 bps to E+300 bps implying initial interest savings of c. EUR 3.5 million per annum
  • Term Loan B upsized by EUR 50 million to EUR 1.305 billion to refinance recently announced KMS acquisition

Berlin, 11/12/2017. Tele Columbus AG (the “Company”), the third largest cable operator in Germany, has successfully obtained lenders’ consent for the repricing of its existing EUR 1.255 billion Term Loan B. Moreover the Company raised an additional term facility of EUR 50 million which will be consolidated into and increase the existing Term Loan B to an aggregate of EUR 1.305 billion. Tele Columbus expects the Term Loan B repricing and upsizing to be effective by the end of December 2017.

Based on continued positive operating performance and strong debt market conditions, the Company was able to opportunistically refinance on favourable terms. As a result of this transaction, the margin on the Term Loan B will be reduced by 25 bps to E+300 bps with a further step down to E+275 bps possible subject to achieving certain leverage parameters. As a result of this transaction, Tele Columbus is expected to save approximately EUR 3.5 million per annum in interest cost. Moreover, Tele Columbus will use the incremental EUR 50 million proceeds to partially refinance amounts outstanding under its Capex Facility which was drawn to pay for the acquisition of the remaining shares in KMS which were acquired from Vodafone in October this year; the additional EUR 50 million facility will be consolidated into the existing Term Loan B and increase its aggregate outstanding amount to EUR 1.305 billion.

S&P and Moody’s re-affirmed their Tele Columbus ratings of B (stable) and B2 (positive), respectively. This transaction further enhances the Company‘s financial flexibility and underpins management’s continuous focus on cost savings as well as laying the basis for generating cash flow and maximizing future shareholder returns.

J.P. Morgan has acted as sole arranger in relation to the refinancing.

About us

The SDAX-listed Tele Columbus AG serves 3.6 million homes connected thereby being Germany’s third-largest cable network operator. Its brand PŸUR stands for simplicity, performance and fairness in relation to TV and telecommunication products. Via its state-of-the-art fibre network PŸUR offers high-speed broadband internet including fixed-line telephony as well as more than 250 TV channels on a digital entertainment platform which combines linear TV with streaming services. To its housing association partners PŸUR offers flexible models of cooperation and state-of-the-art services such as telemetric and tenant portals. As a full-service partner for municipalities and regional utilities Tele Columbus Group is actively supporting the fibre-based broadband internet expansion in Germany. For its business customers the Group offers carrier services and corporate solutions via its fibre network. Besides its headquarter in Berlin the Company has locations in Hamburg, Leipzig, Ratingen and Unterföhring/Munich. Since January 2015 Tele Columbus AG is traded on the regulated market (Prime Standard) of the Frankfurt Stock exchange and since June 2015 listed in the SDAX.

Disclaimer

This release contains forward-looking statements. These statements are based on management’s current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks and uncertainties, the forward- looking events and circumstances discussed in this Investor Relations release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, investors are cautioned not to place undue reliance on the forward-looking statements.

This release contains references to certain Non-GAAP financial measures, such as Normalized EBITDA and Capex, and operating measures, such as RGUs, ARPU, and Unique subscriber calculation. These supplemental financial and operating measures should not be viewed in isolation as alternatives to measures of Tele Columbus’ financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. The Non-GAAP financial and operating measures used by Tele Columbus may differ from, and not be comparable to, similarly titled measures used by other companies. For further information please see in particular the Footnotes in this Investor Relations release and the financial statements.

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Tele Colum­bus AG

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