Embattled telecommunications business Vocus Group Ltd (ASX: VOC) announced it has closed on a new and increased debt facility of $1.27 billion and NZ$150 million.
Vocus Group is the owner of popular telecommunications brands like Dodo and Primus and owns communications networks throughout Australia and New Zealand.
In recent times Vocus has come under pressure thanks to rapid changes in the telecommunications market, boardroom musical chairs and a rising debt pile.
Vocus hasn’t been alone. Telstra Corporation Ltd (ASX: TLS), Optus and TPG Telecom Ltd (ASX: TPM) are dealing with the fallout of rising data usage and competitive impact of the National Broadband Network (NBN).
Vocus: Out With The Old
In an announcement to the ASX today Vocus announced it has restructured/renewed its debt facilities.
“Our new and upsized syndicated debt facility has been structured to provide Vocus with the flexibility required to execute its strategic initiatives over the coming years,” Vocus Chief Financial Officer, Mark Wratten, said.
The old debt facilities of $1.095 billion and NZ$160 million have been repaid and cancelled.
“We would like to thank our existing and new bank group partners for the strong support they have demonstrated,” Wratten added.
Under the new terms, Vocus said its ‘net leverage ratio’ debt requirement has increased to provide headroom and flexibility.
As previously noted, Vocus expects to have net debt of $1.03 billion and $1.06 billion at June 30th. According to Google Finance, Vocus is a $1.5 billion company.
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