Turk Telekom has signed a club loan, its first in four years, months after becoming the second highest bidder in the country’s LTE auction.
Turk Telekom (IST:TTKOM) has signed a club loan facility agreement with 14 banks, the company stated.
The loans, worth €420m (US$446.6m) and US$380m, mature in five years, including a three-year grace period. The proceeds will be used for refinancing and working capital purposes.
The loans pay an interest rate of 1.80% over Euribor/Libor.
Bank of America Merrill Lynch acted as coordinator, while MLAs were Bank of China, BNP Paribas Fortis, Citibank, HSBC
In August, the incumbent’s mobile arm Avea bid €955m (US$1.07bn) for 175MHz of bandwidth in the country’s €3.35bn LTE spectrum auction.
The company last secured a club loan in 2011, taking out €196m to finance its acquisition of ISP Invitel.