Bonds News

MTS gets banks' backing for loan extension-sources

MOSCOW/LONDON, April 29 (Reuters) - Russia's top cellphone network MTS MBT.N and a pool of foreign creditors have agreed on an extension and pricing terms for a three-year $630 million loan, banking sources said on Wednesday.

“The company has reached an agreement with banks. The deal will be signed soon,” one of the sources told Reuters.

He said the three-year tranche, provided in 2006, will pay a margin of 650 basis points (bps) over LIBOR, which is eight times higher than the original deal.

On the original deal for MTS, the tranche paid a margin of 80 bps over LIBOR.

Another source said that more than 10 banks, including coordinating banks ING and Credit Suisse, would join the deal in senior syndication with one or two still considering commitments.

MTS spokeswoman Yelena Kokhanovskaya declined to comment.

In March, banking sources told Reuters MTS had held talks with the banking syndicate that provided a $1.33 billion loan which includes the $630 million and a $700 million tranche, to discuss upcoming maturing debt. [ID:nLI772342] (Reporting by Oksana Kobzeva and Anastasia Teterevleva in Moscow and Christopher Mangham in London; Writing by Maria Kiselyova; Editing by Jon Loades-Carter)