Turk Telekom majority shareholder Ojer Telekomunikayson, a subsidiary of Oger Telecom, has secured a five-tranche credit facility worth a total US$4.75bn.
The Turkish incumbent announced today that the agreement, signed on 22 May, is comprised of five…
Turk Telekom majority shareholder Ojer Telekomunikayson, a subsidiary of Oger Telecom, has secured a five-tranche credit facility worth a total US$4.75bn.
The Turkish incumbent announced today that the agreement, signed on 22 May, is comprised of five tranches:
- Tranche A1: a US$228m five-year amortising term loan;
- Tranche A2: a €211.97m five-year amortising term loan;
- Tranche B: a US$3bn seven-and-a-half-year amortising term loan;
- Tranche C: a US$250m seven-and-a-half-year revolving credit facility; and
- Tranche D: a US$1bn seven-and-three-quarter-year bullet tranche.
The Istanbul-based telco said proceeds will be used to refinance and extend the tenor of existing debt and pay dividends.
As with previous transactions, Turk Telekom shares have been pledged as collateral for the agreement. Ojer Telekomunikayson, a subsidiary of Dubai-based Oger Telecom, itself a unit of the Saudi Oger Group, retains ownership of the rights to the shares.
Mandated lead arrangers and coordinating bookrunners for the transaction were Akbank, BNP Paribas Fortis, Citi, Deutsche Bank, JP Morgan and Turkiye Garanti Bankasi. BNP Paribas also acted as documentation agent while Citibank International was facility agent and Citicorp Trustee Company security agent.
In a separate announcement on the outcome of an ordinary general assembly meeting today, Turk Telekom said its board of directors has been authorised for acquisitions by the company or its subsidiaries of up to €300m.
In a third statement today, the telco said that it is not currently in talks to acquire any company, although it remains open to opportunities that add value.
