Telecom adds $400m to its bank funding line
BUSINESSDESK: 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.
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.
Its earnings before interest, tax, amortisation and depreciation was $488 million in the first six months of the year.
That was the company's maiden result since it spun out its Chorus unit as a standalone entity last year, saddling the network business with $1.7 billion of debt in the demerger.
Telecom's shares rose 0.2% to $2.495 and have climbed 20% this year.