Tiscali gets €150 million credit facility

By Sara Rosenberg

New York, Aug. 8 - The Tiscali Group closed on a new €150 million senior secured credit facility, according to a company news release.

Silver Point Finance provided the new financing.

The three-year facility is priced with an initial interest rate of Libor plus 600 basis points. Of the total amount, €50 million is expected to be advanced this month and the remaining €100 million will be made available in September 2006, subject to customary terms and conditions.

Proceeds will be used for general corporate purposes and to refinance the 4.25% equity linked bonds due September 2006.

"This credit facility enables us to execute the business plan in our core markets as announced to the market in April of this year. These plans are focused on profitable growth of our customer base by investing in ULL networks and offering high quality services at a fair price to our customers. We are pleased to have found a partner in Silver Point, who understands the growth potential in our business," said Ruud Huisman, chief executive officer, in the release.

"After repayment of the bonds due July 7, 2005, we have achieved our objective of financing our business plan. This facility is structured in such a way that it enables us to meet our commitments while at the same time providing operating flexibility," added Massimo Cristofori, chief financial officer, in the release.

Tiscali is a Sardinia, Italy-based internet communication company.

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