Tricom obtains $10 million facility

New York, Dec. 19 - Tricom, SA said it obtained a $10 million secured credit facility to provide liquidity while it undertakes a financial restructuring.

The facility is with a group of existing creditors led by Mizuho International, plc.

The one-year million facility is secured by various company assets, including its Latin American and U.S.-based assets. It matures on Dec. 31, 2004.

Transaction fees and interest payments will be reserved from proceeds and placed in an escrow account.

The Santo Domingo, Dominican Republic communications company will have to make mandatory prepayments upon certain asset sales.

Tricom has an option to convert the loan to equity as part of a restructuring. The loan grants the lenders specific options related to future equity investments in Tricom, including rights of first refusal to provide up to $15 million of new equity to fund operations.

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