Moody’s gives Baa3 to Omantel notes

Moody's Investors Service said it assigned a Baa3 rating to the dollar-denominated benchmark offering of senior secured notes due 2023 and 2028 Oztel Holdings SPC Ltd. plans to issue with an unconditional and irrevocable guarantee by Oman Telecommunications Co. SAOG (Omantel).

The notes will initially benefit from shared security over a 21.9% listed equity stake in Mobile Telecommunications Co. KSCP (Zain) currently valued at around $1,476,000,000.

The outlook is negative.

"The notes offering is consistent with Moody's expectations regarding Omantel's funding plans as incorporated in the company's ratings, including the Baa3 long-term issuer rating assigned to Omantel," Moody's vice president and senior analyst Douglas Rowlings said in a news release.

"The net proceeds of the offering will be used to repay a $1.45 billion bridge loan facility raised as part of Omantel's acquisition of an equity stake in Kuwait-based mobile network operator Zain, whose operations span the Middle East and Sudan."

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