How Cablecom rewrote the bank debt rule book

Author: | Published: 1 Jun 2005

Swiss cable television company Cablecom broke with conventional refinancing wisdom with its most recent deal, replacing all its debt with sub-investment grade capital markets notes containing no financial maintenance covenants.

The SFr1.425 billion ($1.2 billion) deal is the first transaction in Europe to completely refinance fully performing bank debt (including the working capital portion) with a series of sub-investment grade capital markets instruments containing no financial maintenance covenants or other undertakings typical to bank...