Russia's Mobile TeleSystems closes on upsized $600 million syndicated loan

By Reshmi Basu

New York, Oct. 4 - OAO Mobile TeleSystems said it closed on an upsized $600 million syndicated loan facility.

The deal was increased from $500 million due to demand.

The loan was launched in July. MTS drew $200 million in late July and the company plans to tap the remaining $400 million by the beginning of December.

The interest rate is Libor plus 250 basis points and the maturity is three years.

The proceeds of the loan will be used to refinance some of the debt maturing this year as well as for general corporate purposes.

The bookrunners are ABN AMRO Bank NV, HSBC Bank plc and ING Bank NV with ING also acting as documentation agent and facility agent. Raiffeisen Zentralbank Öesterreich AG is signing agent. All these banks plus Bank Austria Creditanstalt AG, Commerzbank Aktiengesellschaft and Barclays Bank plc were lead arrangers.

The syndicate is now made up of 24 international financial institutions.

Moscow-based MTS is the largest mobile phone operator in Russia.

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