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Telecom adds $400m to bank funding line

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Telecom adds $400m to bank funding line

3News NZ

Telecom's earnings before interest, tax, amortisation and depreciation was $488m in the first six months of the year

Telecom's earnings before interest, tax, amortisation and depreciation was $488m in the first six months of the year

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 for general corporate purposes.

The phone company set up a two and three-year revolving credit facility with Westpac in addition to its as-yet undrawn $600m syndicated committed standby credit facility established in April, it said in a statement.

The new funding line will go towards repaying $420m of debt coming due this year.

Earlier this month, Telecom affirmed second-half earnings guidance of some $560m as it persists with its focus on stripping out costs.

Telecom's earnings before interest, tax, amortisation and depreciation was $488m 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.

NZN

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