Qtel set to sign two-year loan extension - sources

Telecom co to sign forward start deal on a revolving credit facility maturing in Nov.

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By  Christopher Mangham Published  March 3, 2009

Qatar Telecommunications Co (Qtel) said on Tuesday it had signed a forward start agreement on a revolving credit facility maturing in November, extending the loan by two years.

Under a forward start agreement, lenders typically agree to extend existing loans at final maturity in return for a hefty increase in pricing on the existing credit.

Initial mandated lead arrangers and bookrunners are Bank of Tokyo-Misubishi UFJ, Barclays Capital, BNP Paribas, DBS and Royal Bank of Scotland, while Qatar National Bank acted as initial mandated lead arranger and financial adviser.

Banking sources close to the deal said each of the banks committed $200 million for a fee of 200 basis points (bp), adding the loan carries a margin of 250 bp over LIBOR.

International Bank of Qatar, JP Morgan Chase, Arab Bank, Doha Bank and Housing Bank for Trade and Finance have also joined the deal with smaller tickets to take the total to $1.5 billion, the sources said.

The bankers said the borrower would like $2 billion and a general syndication will be used to raise the remaining amount.

The original three-year $2 billion revolving credit facility was arranged by mandated lead arrangers and bookrunners Barclays and Royal Bank of Scotland in November 2006 and paid a margin of 22.5 bps over LIBOR. (Reuters)

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