December 23, 2019 / 10:59 AM / a month ago

Brazil's Oi says mobile unit to issue up to $609.4 million in debenture bonds

SAO PAULO (Reuters) - Brazilian telecoms company Oi SA (OIBR4.SA) said on Monday its mobile unit has signed an agreement to issue up to 2.5 billion reais ($609.40 million) in debenture bonds with a 24-month term to meet its cash needs.

The move comes as Brazil’s largest fixed-line carrier struggles to turn around its business since filing for bankruptcy protection in June 2016 and to restructure approximately 65 billion reais ($15.7 billion) of debt.

In a securities filing early on Monday, Oi said the debt issuing was foreseen in its restructuring plan as debtor-in-possession financing (DIP) to raise cash while under bankruptcy.

The company is also working to divest non-core assets such as towers, data centers, real estate and a 25% stake in Angolan carrier Unitel to fulfill investments in its fiber-to-the-home broadband service.

Earlier in December, Oi’s chief operating officer said the company had hired financial advisors to put a value on its mobile unit, which has draw the interest of all three competitors.

Executives from all three major carriers - Telefonica Brasil SA (VIVT4.SA), TIM Participações SA (TIMP3.SA) and America Movil’s Claro (AMXL.MX) - said they could consider a deal with Oi.

($1 = 4.1024 reais)

Reporting by Gabriela Mello; editing by Alison Williams, Larry King

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below