MTC signs US$2.4 billion syndicated bridge facility

On March 29, MTC entered into a binding agreement with the shareholders of Celtel to acquire 100% of the issued capital of Celtel for a total cash consideration of US$3.36 billion.

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By  Tawanda Chihota Published  May 28, 2005

Kuwait operator MTC has signed a general syndication agreement for the US$ 2.4 billion bridge facility which was used to fund part of MTC’s acquisition of Celtel International. The bridge facility was fully underwritten by Barclays, CSFB, National Bank of Kuwait, and UBS. The four banks also acted as joint mandated lead arrangers and bookrunners, and National Bank of Kuwait also acted as facility agent. The facility was significantly oversubscribed at the general syndication with 48 international and regional banks and financial institutions (including the mandated lead arrangers) participating in the deal and committing in excess of US$3.5 billion in total. The bridge is considered the biggest syndicated facility in the Middle East and Gulf Region for a privately owned company, and was very well received in the market due to the high creditworthiness of MTC as a borrower. On March 29, MTC entered into a binding agreement with the shareholders of Celtel to acquire 100% of the issued capital of Celtel for a total cash consideration of US$3.36 billion. The transaction was financed by a combination of existing cash resources and this bridge facility of US$2.4 billion. Sixteen banks and financial institutions joined the general syndication at the lead arranger level each with a commitment of at least US$ 100 million, fourteen banks and financial institutions joined at co-arranger level each with a commitment of US$ 50 million, and fourteen banks and financial institutions joined at the lead manager level each with a commitment below US$50 million.

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