Chilean mobile telephone operator Entel announced on Tuesday that it has received a $400 million loan from a syndicate of international banks led by the Bank of Tokyo-Mitsubishi with the participation of the financial institutions Mizuho, HSBC and Scotiabank. The operators said the loan will be used primarily to repay debt and partially, to fund new investments.
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Entel said the majority of the funds will be used for an advance second installment payment of a syndicated loan maturing in 2013 and to refinance other company liabilities.
The credit, which comes with quarterly interest payments or through semi-annual amortization, starts payment in 2015 and earns an annual interest rate of 1.98% in U.S. dollars for the first period, including the spread, commissions and placement fees.
The CFO and controlling manager of Entel, Felipe Ureta, said that “this transaction shows the financial community’s strong support of Entel.” He stated that the loan which was granted in foreign currency will be used primarily to prepay a $340 million credit and the amortization for the years 2013 and 2014; this is the second installment of an international syndicated loan of $600 million granted by other local banks. The balance will be used to finance new investment.
Entel is planning to invest $3 billion between 2012 and 2014 focused on mobile technology. As part of the plan, Entel will make $900 million iin investments in 2012, including the purchase of handsets for clients with contracts.
