Tele Columbus €475 million talked at Euribor plus 325-350 bps on floater, 9% area on fixed

By Paul A. Harris

St. Louis, April 26 - Price talk emerged on both the fixed- and floating-rate tranches of the €475 million Tele Columbus AG high-yield bond offering on Monday, according to market sources.

Price talk is Euribor plus 325 to 350 basis points on €195 million senior floating-rate notes due 2010 (B1/B), which will be non-callable for one year.

Meanwhile, price talk is in the area of 9% on the €280 million senior subordinated fixed-rate notes due 2012 (B3/B-), which will be non-callable for four years.

A one-day U.S. roadshow is expected to conclude on Tuesday, with the deal pricing shortly thereafter.

Merrill Lynch & Co. is the bookrunner for the Rule 144A/Regulation S offering. HVB is the co-manager.

Proceeds will be used to refinance debt, refinance a shareholder loan and fund a small dividend payment.

The cable television and communications services company is based in Hanover, Germany.

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