Sharechat Logo

Telecom adds another $400 mln to bank funding line

Tuesday 19th June 2012

Text too small?

Telecom, New Zealand's biggest listed company, has added a further $400 million to its bank credit lines which it says it will use to repay short-term debt and general corporate purposes.

The phone company set up a two and three-year revolving credit facility with Westpac Banking in addition to its as-yet undrawn $600 million syndicated committed standby credit facility established in April, it said in a statement. The new funding line will go towards repaying $420 million of debt coming due this year.

Earlier this month, Telecom affirmed second-half earnings guidance of some $560 million as it persists with its focus on stripping out costs.

Telecom's earnings before interest, tax, amortisation and depreciation was $488 million in the first six months of the year.

That was the phone company's maiden result since it spun out its Chorus unit as a standalone entity last year, saddling the network company with $1.7 billion of debt in the demerger.

Telecom's shares rose 0.2 percent to $2.495, and have climbed 20 percent this year.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Telecom Corporation of New Zealand (TEL)
Telecom in drive to latch on to growing data usage with 4G mobile launch next month
Telecom lines up to buy 700MHz spectrum to extend reach of 4G network
Telecom backs setting copper prices until 2020, warns against getting too far away from input cost
Telecom puts $60M price tag on new Auckland data centre, Hawkins, AECOM win build
Telecom ends jobs purge, looks for ‘more sophisticated’ ways to save money
Telecom FY earnings fall to bottom of guidance range, sees unchanged dividend in 2014
Telecom takes spat with Vodafone to regulator after dropping court action
Telecom unbundling key to regulator's copper conundrum
Telecom lures customers to faster services in EPL deal