New Issue: Tele Columbus sells €475 million notes in two tranches

By Paul A. Harris

St. Louis, April 29 - Tele Columbus AG priced €475 million of high-yield bonds in two tranches on Thursday, according to an informed source.

The company priced an upsized €245 million of six-year senior floating-rate notes (B1/B) at par to yield three-month Euribor plus 375 basis points. Revised price talk called for a spread over Euribor in the area of 375 basis points, increased from 325-350 basis points. The floating-rate tranche was increased from €195 million.

Tele Columbus also sold a downsized €230 million of eight-year fixed-rate senior subordinated notes (B3/B-) at par to yield 9 3/8%. Revised price talk was in the area of 9¾%, increased from the 9% area. The issue size was decreased from €280 million.

Merrill Lynch & Co. ran the books on the Rule 144A/Regulation S issue, which has no registration rights. HVB was the co-manager.

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

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

Issuer:	Tele Columbus AG
Amount:	€475 million
Bookrunner:	Merrill Lynch & Co.
Co-manager:	HVB
Pricing date:	April 29
Settlement date:	May 7
Floating-rate tranche
Amount:	€245 million, increased from €195 million
Maturity:	April 15, 2010
Security description:	Senior floating-rate notes
Coupon:	Three-month Euribor plus 375 basis points
Price:	Par
Yield:	Three-month Euribor plus 375 basis points
Call features:	Callable after April 15, 2005 at 102, 101, par on or after April 15, 2007
Equity clawback:	Until April 15, 2005 for 35% plus applicable coupon
Ratings:	Moody's: B1
	Standard & Poor's: B
Price talk:	375 basis points area, revised from 325-350 basis points
Fixed-rate tranche
Amount:	€230 million, decreased from €280 million
Maturity:	April 15, 2012
Security description:	Fixed-rate senior subordinated notes
Coupon:	9 3/8%
Price:	Par
Yield:	9 3/8%
Spread:	545 basis points
Call features:	Callable after April 15, 2008 at 104.688, 102.344, par on or after April 15, 2010
Equity clawback:	Three years, 35% at 109.375
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	9¾% area, revised from 9% area

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