TNL (Oi) poised to secure USD1bn credit facility, reports say

6 Oct 2011

Brazil’s biggest telecoms operator by revenues, Telemar Norte Leste (TNL), is reportedly close to obtaining a USD1 billion syndicated standby revolving credit-line, according to Bloomberg citing people familiar with the matter. It is understood Rio de Janeiro-based TNL, which offers fixed and mobile products under the brand name Oi, will pay between 90 and 120 basis points over the London interbank offered rate (Libor), for the facility that has a maturity of five years. The frontrunners are thought to be Bank of America, Citigroup, HSBC Holdings and Royal Bank of Scotland Group, according to the sources who wish to remain anonymous because the deal has not been made public. The sources say that TNL originally sought USD1.5 billion but scaled back its plan in the wake of a deterioration in world markets and the attendant problem of higher interest rates.

Brazil, Oi