Oi announced in the early hours of Tuesday that it had agreed a new loan with BTG Pactual bank, the company’s creditor, for an amount of 300 million dollars, on “more advantageous” terms for the telecommunications group which is in its second recovery consecutive judicial proceeding.
The company said the terms of the loan call for a maturity in December 2024 and costs (including interest and fees) of 13% per annum, “of which 6% PIK and 7% cash, which, including fees and rates, represent, at maturity , an “all-inclusive” cost of 20% per year, in US dollars or the equivalent in real”.
The loan guarantee corresponds to 95% of the shares of neutral network operator V.tal, Oi’s main remaining asset.
The proceeds of the loan will serve to repay in advance the entire debt relating to a previous financing agreement in the amount of 200 million dollars “and the remaining balance to satisfy the working capital and investment needs of the Oi Group to maintain its activity”.
The transaction depends on the court’s approval of Oi’s judicial recovery, which, among other conditions, must accept that the guarantee proposed in the agreement replaces the fiduciary sale of V.tal shares from the previous debt issue.
Source: Terra
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