Mox Telecom, a German calling cards provider, has issued E19m worth of note loan, increasing the initial volume of E15m following strong demand from institutional investors.
The note loan, which is an unsecured, bilateral loan agreement, was placed in…
Mox Telecom, a German calling cards provider, has issued E19m worth of note loan, increasing the initial volume of E15m following strong demand from institutional investors.
The note loan, which is an unsecured, bilateral loan agreement, was placed in three tranches with a duration of three and five years. The average interest rate of all tranches is less than 4% in nominal terms, a statement read.
Landesbank Baden-Wurttemberg acted as arranger and sole bookrunner and the transaction. The company expects to use the proceeds of the issue to finance acquisitions, including in the US.
In a statement, Mox Telecom CFO Christoph Zwingmann said: “We expected a good demand, but the positive feedback and high over-subscription surprised us all. The promissory note was signed by top investors and accompanied by additional operational funding (i.e. overdrafts).
“Mox thus achieved a significant optimisation of its debt maturity structure as well as a significant improvement in return on equity through leverage.”
