Spanish incumbent Telefonica is to sign an E8bn loan in Madrid today, TelecomFinance understands.
A syndicate of 29 banks, with 16 of these in the top tier and another 13 in the lower tier, is to be involved. Banks in the top tier are paying tickets of…
Spanish incumbent Telefonica is to sign an E8bn loan in Madrid today, TelecomFinance understands.
A syndicate of 29 banks, with 16 of these in the top tier and another 13 in the lower tier, is to be involved. Banks in the top tier are paying tickets of E375m apiece, while those in the second one are committing E75m-E225m each. Citibank is acting as agent.
The top 16 banks are BBVA, Santander, Bank of Tokyo Mitsubishi, Bayerische Landesbank, BNP Paribas, La Caixa, Citibank, HSBC, Intesa Sanpaolo, Lloyds TSB, Mitsuho Bank, Societe Generale, Sumitomo, RBS, UBS and UniCredit. The second tier includes investment banks including Credit Suisse, Goldman Sachs, BoA Merrill Lynch and JPMorgan.
As reported in the July issue of TelecomFinance, the loan consists of two tranches. The first, worth E3bn, will cover the refinancing of Telefonica O2 Czech Republic, formerly known as ?eský Telecom. The second, worth E5bn, will help finance Telefonica’s acquisition of Portugal Telecom’s 50% stake in Brasilcel, the Holland-based holding company that owns 60% of Brazilian mobile operator Vivo. This part of the loan is dependent on Portugal Telecom agreeing to this deal, which is expected to be announced today.
