Brazilian telco Oi has obtained a five-year US$1bn revolving credit facility from a syndicate of nine banks. Oi said it will pay an annual interest rate of 0.90% over Libor.
Four of Oi’s subsidiaries – Brasil Telecom, Brasil Telecom Celular, Telemar…
Brazilian telco Oi has obtained a five-year US$1bn revolving credit facility from a syndicate of nine banks. Oi said it will pay an annual interest rate of 0.90% over Libor.
Four of Oi’s subsidiaries – Brasil Telecom, Brasil Telecom Celular, Telemar Norte Leste and TNL – obtained the revolver.
The leading banks in the syndicate were BoA Merrill Lynch, Citigroup, HSBC and RBS.
Barclays, BoT Mitsubishi UFJ, Deutsche Bank, Morgan Stanley and Sumitomo Mitsui also participated at different levels in the syndicate.
The three Oi subsidiaries said in a statement that they can tap the credit line at any time during the five-year contract.
They added that the operation creates a substantial cushion of liquidity, strengthening the capital structure and credit profile of the group, and allowing greater efficiency in cash management.
In August, the boards of directors at four companies within the Oi group – Brasil Telecom, Coari Participacoes, Telemar Norte Leste and TNL – approved a corporate restructuring of the group.
This restructuring will lead to the consolidation of the group’s various equity interests, so that only one Oi company will remain publicly-traded.
The restructuring is still subject to the approval of the shareholders of these four subsidiaries.
