Italian mobile operator Wind has hired RBS to facilitate talks with existing lenders about a waiver that would allow it to raise a bridge loan for funding 4G auction bids, TelecomFinance has confirmed.
The group’s new unsecured loan, which could…
Italian mobile operator Wind has hired RBS to facilitate talks with existing lenders about a waiver that would allow it to raise a bridge loan for funding 4G auction bids, TelecomFinance has confirmed.
The group’s new unsecured loan, which could range from E500m to E1bn, will be refinanced in the bond market, reported Down Jones citing sources.
BNP Paribas, Credit Agricole, Credit Suisse, Citigroup, Deutsche Bank, JP Morgan, RBS and Unicredit are likely to be among 12 banks acting as loan arrangers and leads on the bond, adds the report.
These banks are reportedly being asked to approve Wind’s waiver by the second week of August.
Italy’s industry ministry is due to announce today which of the five telecom operators that have requested to take part in its spectrum auction will be allowed to do so.
Mobile firms Telecom Italia, Vodafone, Wind, 3 Italia and local Wimax operator Linkem have all registered their interest.
If granted permission to participate, the companies must then submit economic bids by 29 August.
Reports speculate the auction is likely to be completed by the end of September.
The government hopes its sale of frequencies in the 800 MHz, 1800 MHz, 2000 MHz and 2600MHz bands will raise as much as E3.1bn for the treasury.
But the process has been shrouded by confusion and uncertainty.
Most of the 800 MHz spectrum that will go up for sale is currently owned by local TV broadcasters, which are unhappy with the level of compensation being offered to release their frequencies. Their request for double the government’s offer of 10% of auction proceeds, in return for these frequencies, risks delays to them being released, negatively affecting their value.
Egyptian telecoms tycoon Naguid Sawiris, who sold Wind to Russian mobile giant Vimpelcom earlier this year, has also reportedly called on the government to postpone the auction until the country’s current economic crisis is settled.
However, ratings agency Fitch believes the risks tied to the auction should be manageable.
“The announcement by the Italian government of the Italian spectrum auction’s timing and target price in the most attractive 800 MHz range has focussed operator’s minds on how to deal with the process despite wide confusion over the process,” the firm stated in an investors note today.
Italy’s Industry Ministry was unable to comment before the press deadline.
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