Telco eAccess has announced it will issue foreign currency-denominated senior notes as part of its Y165bn (US$2bn) facility agreement used to refinance borrowings made by its wholly-owned subsidiary EMOBILE.
The company said it will sell Y34bn (US$420m)…
Telco eAccess has announced it will issue foreign currency-denominated senior notes as part of its Y165bn (US$2bn) facility agreement used to refinance borrowings made by its wholly-owned subsidiary EMOBILE.
The company said it will sell Y34bn (US$420m) worth of seven-year notes carrying an interest rate of 8.25%. It will also issue Y22.8bn (E200m) in senior notes maturing in April 2018 and carrying an interest rate of 8.375%.
The proceeds from those bonds will be used to prepay the Y165bn loan, eAccess said in a statement. This facility agreement has a five-year maturity and pays 375bn over Tibor.
In January, TelecomFinance reported that the loan would be used to refinance a Y220bn (US$2.6bn) seven-year term loan that EMOBILE secured in 2006 prior to its merger with eAccess.
Of that facility, the company still has Y178.75bn (US$2.18bn) in outstanding debt, which will be reduced to Y165bn by 31 March 2011 following scheduled repayments.
The lead arrangers and bookrunners for the facility agreement are Credit Agricole, ING, Mizuho, SMBC, Aozora Bank and UBS.
