Vimpelcom to extend term of $3.2 bln loan to subsidiary Global Telecom
MOSCOW. March 6 (Interfax) - The supervisory board of Vimpelcom Ltd has authorized management to extend the term of a three-year, multibillion dollar loan it made in 2011 to a subsidiary, Global Telecom Holding (GTH - formerly Orascom Telecom Holding).
The loan, totaling approximately $3.2 billion including accrued interest, is scheduled to mature in May 2014, Vimpelcom said in a press release.
Vimpelcom says it will modify the loan interest rate, setting it at up to 13% annually.
The press release does not specify the initial loan parameters.
"The extension of the shareholder loan will be subject to approval by a majority of the minority shareholders participating at the next GTH shareholders meeting," the press release says.
Vimpelcom Ltd owns 51.7% of GTH, which in turn owns stakes in mobile operators in Algeria (Djezzy), Pakistan (Mobilink), Bangladesh (Banglalink), Canada (Globalive Wireless) and Zimbabwe (Telecel Zimbabwe). A subsidiary, Telecel Globe, has operations in Burundi, Central African Republic and Namibia.
GTH accounts for over 15% of Vimpelcom revenue and almost 17% of earnings before interest, taxes, depreciation and amortization (EBITDA).
GTH revenue declined 5% to $3.45 billion in 2013. EBITDA was down 6% to $1.66 billion.
The subsidiary's net debt at the end of 2013 totaled $2.3 billion and the net debt/EBITDA ratio was 1.4, compared to 2.3 for the entire Vimpelcom group.