Russia’s largest wireless operator Mobile TeleSystems (MTS) has agreed new terms with Sberbank for credit agreements totalling Rbs80bn, extending their tenures and lowering interest rates.
The new terms of the non-revolving credit lines push back…
Russia’s largest wireless operator Mobile TeleSystems (MTS) has agreed new terms with Sberbank for credit agreements totalling Rbs80bn, extending their tenures and lowering interest rates.
The new terms of the non-revolving credit lines push back maturities from December 2017 until March 2020 and interest rates cut from 8.5% to 8.45%.
The original agreements for credit lines of Rbs60bn and Rbs40bn were signed in December 2010. The former was used to refinance outstanding loans from Sberbank and the latter to fund the rollout of 3G networks in 2011.
MTS first amended the credit lines in 2011, increasing their tenures until 2017 and lowering their interest rates from 8.95% to 8.5%. This July, the telco repaid half of the Rbs40bn facility.
Commenting on the new terms in a statement, MTS CFO Alexey Kornya said the company is continuing to optimise its debt portfolio.
“Our success in amending the terms of the financing to more favourable ones reflects on the stability of MTS’ financial standing and the strength of our relationship with Sberbank, which has continually demonstrated its long-term support of MTS.”
MTS’ net debt as of 30 September 2013 totalled Rbs167.49bn (US$5.12bn) and net debt to LTM OIBDA was at 1x.
