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Egypt's Orascom Telecom to refinance debt in connection with merger
By Angela McDaniels
Tacoma, Wash., March 29 - Orascom Telecom Holding SAE plans to refinance $2.7 billion of debt and derivative transactions, according to a company news release.
The company's debt includes 7 7/8% senior notes due 2014, floating-rate equity-linked notes due 2013 and a senior secured credit facility.
Orascom's parent company, VimpelCom Ltd., has agreed to combine with Wind Telcom SpA.
As part of the merger, Orascom will split into two companies. One will continue as Orascom Telecom Holding, and the other will be called Orascom Telecom Media and Technology Holding SAE. The new company will hold some assets of Orascom that will not form part of the VimpelCom-Wind Telecom group going forward.
The merger will trigger the refinancing of the equity-linked notes and the credit facility, and Orascom said that refinancing the high-yield notes will facilitate its split into two companies.
VimpelCom will provide the funds for the refinancing.
Orascom's shareholders will vote on the refinancing plan, the demerger and an increase in its authorized share capital at a meeting on April 14.
Orascom is a telecommunications company based in Cairo.
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