refinancing of debt obligations of Forthnet which will make long-term borrowing of the company.
The cover of the convertible bond loan issued by the company by 70 million. euro was practically the last obstacle to proceed with the refinancing which creates a new data for the well-known telecommunications provider, with the creditor banks to however, it is these that will play a key role in subsequent developments.
The Forthnet announced that the convertible bond loan amounting to 99,087 million. euro covered at the rate of 70,77%, i.e. the amount that is collected is 70,124 million. euro. It is noted that the minimum necessary amount was 70 million. euro, the amount so agreed to be paid by Forthnet to the creditor banks, in order to entry into force of the agreement for refinancing.
The main shareholders of Forthnet, namely the Wind Hellas (33%), the maltese Go (22,065%), the arab Massar Investments (22,065%) and Vodafone Greece (6,5%), not excercising their right, something which was rather expected. In practical terms, the convertible loan was subscribed by institutional investors at the rate of 70,65%, which, according to the existing information, it was the same the creditor banks.
The agreement refinancing provides that after payment of the creditor banks 70 million. euro, will be issued two bond loans. The first of a total of € 78,462 million. euro to cover the obligations of the parent company of the group, and the second, amounting to 176,538 million. euro for the coverage of the subsidiary Forthnet Media. In both loans organiser is the National Bank of Greece, Piraeus Bank and Alpha Bank, while the duration of both will be eight years with a floating interest rate.
This means that, in practice, the loan obligations are long-term, giving them a significant breath to the company, which may attract more easily new investors for the business plan.
Source
The banks offered a “breath of life” in Forthne
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