Telecom adds $400 mln to bank funding line

Telecom adds $400 mln to bank funding line

By Paul McBeth

June 19 (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 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.

(BusinessDesk)

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