Chilean telco Entel plans to issue up to US$1bn in senior notes maturing in 2024.
Proceeds will be used to pre-refinance existing debt, improving the company’s liquidity, and general corporate purposes, Moody’s said in a release giving the notes a…
Chilean telco Entel plans to issue up to US$1bn in senior notes maturing in 2024.
Proceeds will be used to pre-refinance existing debt, improving the company’s liquidity, and general corporate purposes, Moody’s said in a release giving the notes a Baa2 rating with a stable outlook.
Moody’s explained its rating is based on Entel’s strong market position in its home market, where it is the second-largest telecoms and largest wireless operator. Entel’s high-quality subscriber base and service, which support a relatively solid EBIDTA margin, are also factors, the agency said.
The stable outlook rating reflects Moody’s view that Entel will post predictable operating results and credit metrics over the next 18 months.
As of 30 June, Entel’s upcoming debt maturities include US$200m due June 2014, US$200m due December 2014 and the US$400m bridge loan due February 2014 used to fund Entel’s recent acquisition of Nextel Peru.
Entel, which was not immediately available for comment, provides mobile, long-distance, private data network, internet and local services.
