BERLIN — Kabel Deutschland (KDG), Germany’s biggest cable provider, has secured a Euros 650 million ($936 million) loan to finance its acquisition of 1.2 million cable subscribers from the Orion Group.
The new senior term facility will cover the Orion deal, valued at $842 million, as well as other potential acquisitions of up to $290 million, along with additional direct funding from KDG, the cabler said Tuesday.
KDG expects to close the Orion deal by spring 2008 following regulatory approval.
Orion earlier this month took over regional cabler PrimaCom, agreeing to give KDG the 1.2 million households as part of the deal after KDG withdrew its competing takeover offer. Orion will also pay some $55 million for KDG’s 18% stake in PrimaCom.
Orion, a subsidiary of Luxembourg investment group Escaline, now controls 82% of PrimaCom, which has some 1 million customers. With the acquisition, Orion’s cable customer base will reach 4.1 million.
KDG has cable operations in 13 German states, serving some 9 million households. Company has annual revenue of around $1.6 billion.