International law firm Allen & Overy recently advised the mandated l…

International law firm Allen & Overy recently advised the mandated lead arrangers, Citigroup Global Markets Limited, Deutsche Bank AG London, Goldman Sachs International and Morgan Stanley Senior Funding Inc, in relation to the e4.175 billion debt facilities to refinance e1.3 billion of existing facilities used for the acquisition of six regional cable companies by Kabel Deutschland GmbH in March 2003 and to provide further financing for the potential acquisition of three additional German regional cable companies.

Allen & Overy advised the mandated lead arrangers on the e2.6 billion senior facilities and Cravath, Swaine & Moore advised on the e1.575 billion subordinated bridge to high yield facility.

Freshfields Bruckhaus Deringer advised the borrowers, private equity houses APAX, Providence Equity Partners and Goldman Sachs PIA (owners of Kabel
Deutschland) on the senior debt and Simpson, Thacher & Bartlett advised KDG on the bridge and high yield issues.

Partner George Link commented:
“This was a complicated financing made more difficult by recent changes to the German thin capitalisation rules. All the parties involved worked hard, within a very tight timeframe, to structure a financing which worked from both the borrower’s and the banks perspective. The Allen & Overy and Freshfields teams built up a strong relationship and high level of co-operation without which a deal of this nature could not be closed in such a tight timescale.”

The Allen & Overy team was led by London-based partner George Link. He was assisted by associates Richard Satchwell, James Graham and Phillip McMahon. Our German team was led by Frankfurt-based partner Peter Stenz who was assisted by Volker Enseleit, Olaf Meisen,Stefan Kuhm, and Marie-Luise Stephan.