UAE operator Etisalat has signed a €3.15bn (US$4.36bn) loan agreement with 17 local, regional and international banks to fund its acquisition of a 53% stake in Maroc Telecom.
The financing consists of two facilities which priced in euros but can also…
UAE operator Etisalat has signed a €3.15bn (US$4.36bn) loan agreement with 17 local, regional and international banks to fund its acquisition of a 53% stake in Maroc Telecom.
The financing consists of two facilities which priced in euros but can also be used in dollars.
Tranche A is a €2.1bn (US$2.9bn) 12-month bridge loan, priced at Euribor plus 45bps for the first six months. This increases by 15bps in each of the following three months.
Tranche B is a €1.05bn (US$1.5bn) bullet term loan, priced at Euribor plus 87bps.
The funds will be drawn upon the closing of the Maroc Telecom deal. The names of the involved banks were not disclosed.
Etisalat agreed to buy the majority stake in the Moroccan incumbent from Vivendi for a total €4.2bn (US$5.8bn) last November. This included a consideration of €3.9bn and Maroc Telecom’s €300m dividend to Vivendi.
An Abu Dhabi state-owned fund, most likely to be Mubadala, will finance a quarter of the purchase price, Reuters reported citing three bankers with knowledge of the deal. While the name of the fund has not been revealed, Mubadala already has telecoms assets and an existing partnership with Etisalat.
Last month, Etisalat CFO Serkan Okandan said the deal should close by the end of May, however the bankers cited in the Reuters report said it should complete this week.
The Kingdom of Morocco has a 30% stake in Maroc Telecom, the nation’s largest mobile operator, while the remaining 17% of shares are in free float. Under Moroccan takeover rules, Etisalat is required to make a buyout offer to Maroc Telecom’s minority shareholders, however the UAE telco has not provided details on this.
