Orascom says lenders on a US$2.5bn credit agreement have agreed to grant it a waiver related to the Algerian authorities’ US$600m tax claim.
The waiver is conditional on Orascom raising at least US$700m in its planned US$800m rights issue.
Scheduled for…
Orascom says lenders on a US$2.5bn credit agreement have agreed to grant it a waiver related to the Algerian authorities’ US$600m tax claim.
The waiver is conditional on Orascom raising at least US$700m in its planned US$800m rights issue.
Scheduled for this month, the rights issue will be the first in the history of Orascom, which is listed in Cairo and Alexandria.
It will offer shareholders a new share for every existing share at E£1 each. If fully subscribed, it would take the group’s debt ratio to less than 2x, from 2.4x based on 2008 results.
The group had long-term and short-term loans totalling respectively US$5.2bn and US$530m by the end of 2008, with an EBITDA of US$2.38bn.
Merrill Lynch, BNP Paribas, Citigroup, Credit Suisse and EFG Hermes are advising on the transaction.
