Reliance Globalcom, a unit of Indian mobile operator Reliance Communications, is looking to raise as much US$500m through a dollar-denominated loan, according to a person familiar with the matter cited by Dow Jones.
The loan will reportedly have a…
Reliance Globalcom, a unit of Indian mobile operator Reliance Communications, is looking to raise as much US$500m through a dollar-denominated loan, according to a person familiar with the matter cited by Dow Jones.
The loan will reportedly have a maturity of five years and will pay an interested rate in the mid-300bp over Libor.
Reliance Globalcom provides global managed network solutions and services. The company did not return phone calls and emails by press time.
Similarly, a few days ago, it was reported that Flag Telecom, a telco services provider and unit of Reliance Communications, could raise as much as US$500m by selling bonds to European investors.
Deutsche Bank has reportedly been hired for that transaction. The proceeds will be used to meet debt obligations, including US$200m worth of convertible bonds held by foreign investors and due in May 2011, the Economic Times stated. The company reportedly has another US$900m of foreign currency convertible bonds due February 2012.
Reliance Communications is a highly leveraged company and has been seeking to cut its debt for quite some now. The company recently said it was still considering selling a stake in its tower business, Reliance Infratel, in order to raise cash, emphasizing however that it is currently generating enough cash for its capital expenditure.
