VimpelCom Raises Funding for Orascom Purchase: Reports (Russia, UAE)
According to reports, citing senior bankers, the financing will be replaced with bonds at a later date. The loans will be used to fund the cash component of the acquisition for about $2 billion and to refinance $2 billion of existing VimpelCom debt. A group of three to six banks is expected to arrange the deal.
According to one of the banker close to the deal, VimpelCom is about to get a $4 billion bridge loan to bond issues – it’s extremely aggressively priced for what it is.
Under the terms of the deal between the two companies, VimpelCom will own through Weather – 51.7% of Orascom Telecom Holding and 100% of Wind Italy. Under the terms of the Transaction, Weather shareholders will contribute to VimpelCom their shares in Weather in exchange for a consideration consisting of newly issued VimpelCom common shares, US$1.8 billion in cash and certain assets that will be demerged from Orascom Telecom and from Wind Italy. The deal is valued at around US$6.8 billion in stock and cash.