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April 21, 2008 |
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TELE NORTE: Gets BRL16 Bil. Loan for Brasil Telecom Acquisition Tele Norte Leste Participacoes SA has secured a BRL16 billion bridge loan from Brazilian banks to cover its proposed acquisition of Brasil Telecom Participacoes SA, sources told financial daily Valor Economico. According to Valor Economico, the deal for the loan was reportedly reached with: -- Banco Itau, -- Banco Bradesco, and -- Banco do Brasil. Valor Economico notes that Tele Norte is expected to seek debt restructuring deals in foreign capital markets to fund the deal in the longer term. Business News Americas relates that Tele Norte will make a BRL4.8 billion offer for Brasil Telecom. It must borrow much more as Brasil Telecom's main Brazilian shareholders need BRL11 billion to buy out majority owner Citigroup. Tele Norte will reorganize its ownership structure after acquiring Brasil Telecom, BNamericas says. Brazilian news daily O Estado de S Paulo relates that Tele Norte will disclose the takeover offer this week, after postponing the announcement several times. According to O Estado, the deal is awaiting authorization from telecoms regulator Anatel. Tele Norte promised to pay Brasil Telecom BRL500 million in compensation once Anatel refuses to approve the deal. Brasil Telecom would be entitled to the compensation as Tele Norte's offer interrupted court proceedings between Citigroup and Opportunity, Tele Norte's shareholders, BNamericas states. About Brasil Telecom Headquartered in Brasilia, Brazil, Brasil Telecom Participacoes SA -- http://www.brasiltelecom.com.br -- is a holding company that conducts substantially all of its operations through its wholly owned subsidiary, Brasil Telecom SA. The fixed-line telecommunications services offered to the company's customers include local services, including all calls that originate and terminate within a single local area in the region, as well as installation, monthly subscription, measured services, public telephones and supplemental local services; intra-regional long-distance services, which include intrastate and interstate calls; interregional and international long-distance services; network services, including interconnection and leasing; data transmission services; wireless services, and other services. About Tele Norte Headquartered in Rio de Janeiro, Brazil, Tele Norte Leste Participacoes SA -- http://www.telemar.com.br -- is a provider of fixed-line telecommunications services in South America. The company markets its services under its Telemar brand name. Tele Norte's subsidiaries include Telemar Norte Leste SA; TNL PCS SA; Telemar Internet Ltda.; and Companhia AIX Participacoes SA. * * * As reported on April 27, 2007, Standard & Poor's Ratings Services placed on CreditWatch with negative implications the 'BB+' corporate credit rating on Tele Norte Leste Participacoes S.A. The creditwatch resulted from TmarPart's decision to buy out its holding company's preferred shares. |
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