MTS Signs Syndicated Loan Agreement

OAO Mobile TeleSystems (MBT), the largest mobile phone operator by users in Russia, Monday said it had signed a facility agreement to refinance a portion of its $1.33 billion syndicated loan facility.

Having concluded negotiations with a consortium of banks, MTS said it had signed the facility agreement to refinance the first tranche of its existing $1.33 billion syndicated loan facility in the amount of $630 million, which was scheduled to mature in May 2009.

The company raised $295 million for facility A and EUR214.5 million for facility B to be followed by an additional tranche in the coming weeks as part of the new facility.

The facility will mature in 2012 and will have an interest rate of Libor plus 6.5%.

The Mandated Lead Arrangers are Absolut Bank, Bank of China (601988.SH), Bank of America (BAC), Bayerische Landesbank, BNP Paribas (BNP.FR), Credit Suisse (CS), Export Development Canada, HSBC Bank PLC (HBC), ING Bank N.V., JPMorgan Chase Bank (JPM), Société Générale (SCGLY), Royal Bank of Scotland PLC (RBS), UniCredit (UCG.MI) and WestLB AG.

Credit Suisse and ING acted as co-ordinating banks for the refinancing and ING is acting as the facility agent.

"This facility provides MTS with additional financial flexibility to continue our investment programs and meet our future obligations," said MTS' director of corporate finance Alexei Kaurov.