Aircel ties up INR8 billion loans to refinance existing debt
Aircel Ltd. is a privately held telecom operator. The company had announced seeking nearly INR8 billion in loans with IDFC and Credit Suisse. This was the company's move to refinance its existing debt. Aircel had also expected an operating profit in the current quarter. Currently, the company is seeking a suitor for the said loans.
IDFC and Credit Suisse grant the company's loan as per agreement. The loans would amount USD500 million and INR4.5 billion respectively, said two people familiar with the matter.
Malaysia's Maxis Communications owns 74% of Aircel Ltd. The company would use the funds to repay a part of its existing debt valued INR2.4 billion. The debt is due on January 2014. Apollo Group owns 26% of the company. The telecom operator had expected fresh loans from its existing lenders. Maxis had sent a letter of support for Aircel's move. The latter had repaid its immediate loans and armed with operating profit from July to September quarter, said sources.
State Bank of India was among 15 lenders for the Aircel loan. The bank did not give any comments regarding the loan. IDFC did not also respond to emailed questions while Credit Suisse refused to comment regarding the matter.