Moscow, Russian Federation — April 24, 2006 — Mobile TeleSystems OJSC (“MTS” — NYSE: MBT), the largest mobile phone operator in Russia and the CIS, announces that on April 21, 2006 it signed a $1.33 billion syndicated loan facility with leading international financial institutions.
The Mandated Lead Arrangers are: The Bank of Tokyo-Mitsubishi UFJ Ltd., Bayerische Landesbank, HSBC Bank plc, ING Bank N.V., Raiffeisen Zentralbank Oesterreich AG and Sumitomo Mitsui Banking Corporation Europe Limited.
HSBC Bank plc, ING Bank N.V. and Raiffeisen Zentralbank Oesterreich AG are Bookrunners, with ING Bank N.V., London Branch acting as the Facility Agent. The loan will be used for debt refinancing, specifically $420mln of the current syndicated loan, and for corporate needs such as acquisitions.
The Facility is divided into two tranches. First tranche – $630mln; maturity – 3 years; annual interest is LIBOR plus 0.8%. Second tranche – $700mln; maturity – 5 years; annual interest is LIBOR plus 1.0% during the first three years and LIBOR plus 1.15% during the last two years.
“One of MTS’ goals is to be a leader in terms of business efficiency and signing the syndicated loan facility allows the Company to lower its costs. First of all, MTS can refinance current debt under more favorable conditions. Secondly, this facility allows the Company to finance its business development in a more planned and structured fashion. Thirdly, transactional costs associated with one large facility are significantly lower than it would have been the case, if MTS were to attract a number of smaller sums,” commented Marina Zabolotneva, Head of Company’s Treasury.
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