Incumbent Telekom Austria Group has closed a €735m (US$907.7m) syndicated revolving credit facility.
It replaces an existing €713m (US$880.7m) syndicated facility which matures in August 2013.
Citi and UniCredit acted as coordinating bookrunners…
Incumbent Telekom Austria Group has closed a €735m (US$907.7m) syndicated revolving credit facility.
It replaces an existing €713m (US$880.7m) syndicated facility which matures in August 2013.
Citi and UniCredit acted as coordinating bookrunners and mandated lead arrangers for the transaction. Overall, 16 Austrian and international lenders took part in the transaction.
The revolver has a five-year maturity, although the banks have the option to extend it for a further two. Proceeds will be used for general corporate purposes.
Company CFO Hans Tschuden described the facility as a “key element” of the telco’s financing base, reflecting its conservative strategy.
“The credit facility serves as a liquidity reserve and supports the stable financial profile of Telekom Austria Group,” he said.
The company now has access to €935m (US$1.155bn) of undrawn, committed credit lines, he added. “Moreover, with this transaction we underline Telekom Austria Group’s commitment to its current investment grade rating.”
Separately, in an interview with TelecomFinance last month, CEO Hannes Ametsreiter said the company is regularly assessing acquisition opportunities in its core region of Eastern Europe as well as assets that align with its convergence strategy.
“We have clearly signalled that we have an interest in consolidating markets and we are prepared to play an active role,” he said, pointing to Telekom Austria’s planned acquisition of Orange Austria’s budget brand Yesss! Further consolidation in the Austrian market is an economic necessity, he said.
