Bloomberg News

Telemar Said to Be Close to Obtaining $1 Billion Credit Line

October 05, 2011

Oct. 6 (Bloomberg) -- Telemar Norte Leste SA, Brazil’s biggest telecommunications operator by revenue, is close to obtaining a $1 billion syndicated standby revolving-credit line, according to three people familiar with the matter.

The Rio de Janeiro-based company will pay 90 basis points to 120 basis points over the London interbank offered rate, or Libor, for the loan that has a maturity of five years, according to the people who asked not to be identified because the transaction isn’t public. The leaders are Bank of America Corp., Citigroup Inc., HSBC Holdings PLC and Royal Bank of Scotland Group PLC, said the people.

Telemar originally wanted to obtain $1.5 billion and reduced the amount to $1 billion because international loan markets have deteriorated and the company didn’t want to pay a higher interest rate, according to the people. Telemar declined to comment.

A basis point is 0.01 percentage point.

--Editors: William Ahearn, David Scheer

To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net

To contact the editors responsible for this story: Adriana Arai at aarai1@bloomberg.net; David Scheer at dscheer@bloomberg.net


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