Brazil’s Oi Group — which operates nationwide and offers local and long-distance voice transmission and mobile telephony, data communication, Internet and entertainment services — said last week that it has obtained a revolving credit facility worth U.S. $1 billion.
In a Nov. 5 statement, Oi said it will not use the credit at this time because it has a comfortable cash position. The carrier said that it will instead use the credit to reinforce its cash position over the next five years. “This operation forms a substantial liquidity cushion, strengthening the capital structure and credit profile of the group and enabling greater efficiency of cash management,” the company said.
The contract was concluded with a group of nine global commercial banks with different levels of participation, including Bank of America, HSBC, RBS, Citibank, Tokyo Mitsubishi, Barclays, Deutsche Bank, Morgan Stanley and Sumitomo Mitsui.
Oi said it will pay an annual interest rate of 0.9% over LIBOR.
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