(Bloomberg) -- German cable operator Tele Columbus AG is nearing a deal for a cash injection and extended debt maturities, according to a person familiar with the matter.
The deal envisages Tele Columbus shareholders committing about €200 million ($214 million) of fresh funds to the business, according to the person, who asked not to be identified because the matter is private. In exchange, creditors would agree to push back loan and bond maturities to at least October 2028, the person said.
Already this year Tele Columbus shareholders, which include Morgan Stanley Infrastructure Partners and United Internet AG, have committed €100 million of loans to the company. The cable company currently has about €462 million of term loans coming due in October next year and €650 million of high-yield bonds maturing in May 2025.
The debt extension may also come with an option for the company to pay interest in-kind instead of in cash, according to the person.
The plan is not final and details could change, the person said.
Representatives for Tele Columbus, Morgan Stanley and United Internet did not immediately respond to requests for comment.
Tele Columbus and its owners have been working for months to find a way to refinance its debt. The company has been struggling with cash burn as a result of investment in an ambitious fiber roll-out plan in Germany.
The company had previously said shareholders would be likely to support the company.
Morgan Stanley took over the business in 2021 via its Kublai GmbH vehicle, while United Internet rolled its previous minority stake over into the new entity.
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