€ 850 million Syndicated loan
On September 2, 2005, OTE PLC signed a € 850 million Syndicated Credit Facility with a consortium of banks, guaranteed by OTE. The facility’s original maturity was in September 2010 and had an extension option of 1+1 years subject to lenders’ consent. The facility consists of: a) a € 500 million Term Loan and b) a € 350 million Revolving Credit Facility.
Following OTE PLC’s request and the banks’ relative consent, the maturity of the Loan was extended as follows:
(a) €25.8 million (Term Loan) and €18.0 million (Revolving Credit Facility) matured in September 2010 and were repaid.
(b) €29.0 million (Term Loan) and €20.3 million (Revolving Credit Facility) matured in September 2011 and were repaid and
(c) €445.2 million (Term Loan) and €311.7 million (Revolving Credit Facility) mature in September 2012.
On January 26, 2011 OTE PLC drew in full the € 332 million Revolving Credit Facility under the Syndicated Credit Facility.
To this end, we have the following as of September, 30 2011:
• The outstanding balance of the Term loan is € 445.2
• The outstanding balance of the Revolving Credit Facility is € 311.7 million
The facility bears floating interest calculated on the basis of Euribor plus a margin adjustable based on OTE’s long-term credit rating. As of September , 30 2011 the margin on the Term Loan is 0.275% and the margin on the Revolving Credit Facility is 0.25%.
The terms of the loan agreement include a change of control clause which is triggered when there is a change of control in OTE which will result in a credit rating of OTE or the new legal entity at a level lower of BBB/Baa2. In case the clause is triggered, OTE PLC is obliged to notify the banks, which can request the immediate repayment of the loan.
€ 900 million Revolving Credit Facility (Bond Loan)
On February 9, 2011, OTE signed a € 900 million Revolving Credit Facility (Bond Loan) with a consortium of banks. The facility has a tenor of 2 years with a 1-year extension option at the discretion of the banks. The facility bears floating interest rate where the margin is dependent on OTE’s credit rating as well as on the facility’s utilization. Any undrawn amounts will bear a commitment fee.
On February 10, 2011, OTE drew € 600 million under this facility and used the proceeds for debt repayment of loans from OTE PLC.
On July 13, 2011, OTE drew the remaining amount of € 300 million under this facility.
The Facility contains a change of control clause which is triggered if an entity (other than DEUTSCHE TELEKOM AG, DEUTSCHE TELEKOM AG together with the Hellenic Republic, or any telecommunication operator based in Greece or abroad with rating equivalent or better than DEUTSCHE TELEKOM AG) gains control of OTE. The Facility also includes two financial covenants, namely:
• The ratio of Group Net Borrowings to Group EBITDA should not exceed 3:1 at all times and
• The ratio of Group EBITDA to Group Net Interest Payable should exceed 5:1 at all times.
€ 150.0 Revolving Credit Facility committed by DEUTSCHE TELEKOM AG
On January 31, 2011 OTE PLC signed a € 150 million Revolving Credit Facility with DEUTSCHE TELEKOM AG with the guarantee of OTE, maturing on January 31, 2012 which remains undrawn as a liquidity reserve.
Short term loans
The outstanding balance of Group’s short term loans as of September 30, 2011 amounted to € 2.0 million.
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