Chorus announces new $250m credit facility

Chorus announces new $250m credit facility

Will be used to pay down drawings under its existing bank facility

New Zealand's largest telecommunications infrastructure company, Chorus, has entered into an agreement for a new $250 million bank facility.

Subject to standard conditions, it will be used to pay down drawings under its existing bank facility.

Chorus’ existing syndicated bank facility comprises two equal tranches of $675 million, due to mature in November 2015 and November 2017, respectively.

The new facility extends Chorus’ debt maturity profile with a 2019 maturity date.

Chorus CFO, Andrew Carroll, said the company was pleased to have secured the funding through to 2019 on substantially the same financial terms.

“We appreciate the support of the small group of banking partners who put the facility in place despite the ongoing uncertainty we are experiencing in the current regulatory environment," he said.

“As well as enabling us to extend our debt maturity profile, the new facility will provide additional financial flexibility as Chorus continues to invest heavily in New Zealand’s fibre future through the UFB rollout,” he said.

The market reacted well to the news. Chorus shares gained 2.6 per cent on the NSX to finish at $2.77.

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