Krasnodar, 22th September 2006: Southern Telecommunications Company, the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports on attraction of funds in amount of USD 175 million in the form of syndicated loan.
"UTK" PJSC and «Credit Suisse International» signed USD 50 000 000 Term Credit Facility Agreement and USD 125 000 000 Guaranteed Term Credit Facility Agreement on 31st August 2006 and 15th September 2006, respectively.
The first loan facility is repayable in 37 months including a 24-months grace period. The second credit facility is repayable in 7 years with grace period of 4 years. The interest rate on the loans is the percentage rate per annum, which is the aggregate of LIBOR and the “Margin” of the bank, and meets the current market conditions.
The first credit facility is secured by pledge of equipment. In connection therewith "UTK" PJSC signed Pledge of Equipment Agreement with «Credit Suisse London Branch» as Pledgee in respect of USD 50 000 000 Term Credit Facility Agreement.
The second credit facility is secured by bank guarantee. In connection therewith "UTK" PJSC signed Bank Guarantee Agreement with Bank for Foreign Trade (Vneshtorgbank) in respect of USD 125 000 000 Guaranteed Term Credit Facility Agreement. The Company also signed Pledge of Equipment Agreement with Bank for Foreign Trade (Vneshtorgbank) in respect of USD 125 000 000 Bank Guarantee Agreement.
Alexander Dobryakov, Deputy Director General –Director for Economics and Finance of "Southern Telecommunications Company" PJSC noted: «The funds raised will be forwarded tothe restructuring of the Company’s debt for the purposes of reduction of the credit portfolio weighted average rate and increase in share of long-term liabilities in the debt structure,thereby contributing to steady improvements in UTK’s balance sheet strength.
Establishing our presence in the international debt market is just another step towards building up the Company’s good reputation required to take advantage of the opportunities given by the global capital market (credit resources, issue of CLN, IPO, eurobonds)».
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