Emerging-markets specialist Millicom has signed a US$500m revolving credit facility to increase its financial flexibility.
The loan facility is split between a US$200m two-year tenor tranche with a one-year extension option and a US$300m three-year…
Emerging-markets specialist Millicom has signed a US$500m revolving credit facility to increase its financial flexibility.
The loan facility is split between a US$200m two-year tenor tranche with a one-year extension option and a US$300m three-year tenor tranche with two one-year extension options.
Millicom mandated BNP Paribas, Citi, DNB and Scotiabank as bookrunners and mandated lead arrangers, and Banco Itau, Barclays, Credit Agricole, Goldman Sachs, JP Morgan, Morgan Stanley, Nordea and RBS as MLAs.
Millicom said the revolver would give it increased flexibility in managing its cash balances. It will be used for general corporate purposes.
In February, Millicom closed an US$800m bond issue through its Guatemalan subsidiary for its local unit in the country. The Stockholm-listed telco prefers to raise debt in the countries where its assets are located to create a natural hedge against political risk, and also aims to raise that debt in local currencies to provide a hedge against currency risk.
Its last bond offering at group level came last October when it sold US$800m notes to finance the merger between its Colombian unit, Tigo Colombia, and state-owned telco UNE EPM.
At the end of last year Millicom declared net debt of US$2.3bn and a net debt to EBITDA ratio of 1.4x.