Absolut Bank participated as a Mandated Lead Arranger in a Syndicated Facility arranged for Russia’s top cellphone network Mobile Tele Systems (MTS).
According to a loan agreement signed, the company received a 3 year loan, which partially refinances a $1.33 billion loan raised in 2006. The new original syndicated loan is split between a $295 million Facility A and a 214.5 million euro Facility B. During general syndication five international banks have joined the group of 14 Mandated Lead Arrangers and Book runners, which resulted in the oversubscription by nearly $100 million, bringing the total amount of the facility to $695 million.
The loan matures in 2012 and pays a margin of 650 basis points over LIBOR.
Despite current financial turmoil MTS attracted a strong MLA group, including some new lenders, replacing lenders of the initial loan (original 2006 Syndicated Facility). The MLAs are Absolut Bank (ZAO), Bank of China
(Eluosi), Bank of America, Bank of China (UK), Banque Societe Generale Vostok, BayernLB
, BNP Paribas, Credit Suisse, Export Development Canada, HSBC, ING Bank (London branch), ING (Dublin branch), JPMorgan Chase Bank, Societe Generale
(Paris), Royal Bank of Scotland, UniCredit Bank, WestLB and ZAO UniCredit Bank.
Syndication is destined for success in the current environment thanks to professional work of the arrangers as well as coordinators – Credit Suisse and ING (London branch) acting also as a Facility Agent.