mmO2 signs loan facility
British Telecommunications PLC
18 September 2001
PRXX01 September 18, 2001
mmO2 SIGNS £3.5 BILLION LOAN FACILITY
mmO2 has signed a loan facility totalling £3,500,000,000 arranged and
underwritten by mandated lead arrangers - Barclays Capital, Citigroup,
Deutsche Bank AG London, HSBC, JP Morgan plc and The Royal Bank of Scotland.
The facility is split into two tranches; a £1,750,000,000 364 day revolving
credit facility with one year term-out option and a £1,750,000,000 five year
revolving credit facility. The facility will be available to mmO2 and other
subsidiaries of the mmO2 group to fund business development and for general
corporate needs. It is expected that a significant portion of the facility
will be refinanced through possible capital markets issuances or other forms
of long term financing.
mmO2 and the mandated lead arrangers plan to syndicate the five year revolving
credit facility to a small group of selected banks to participate in the
facility. Barclays Capital and Citigroup will act as bookrunners for the
syndication of the facility which is expected to commence shortly. The Royal
Bank of Scotland is facility agent and Deutsche Bank is documentation agent.
Moody's Investors Services has issued a credit rating for mmO2 of Baa2 with
stable outlook. Standard & Poor's has issued a credit rating of BBB- also with
stable outlook. The split credit rating is the result of different views about
the market for 3G services and the ability of mmO2 to manage the execution
risks it faces.
mmO2 has established relationships with suppliers of high quality data devices
and applications such as the RIM Blackberry, a mobile email device, and the
Connected SME Portal which allows access to key office functions via a mobile
handset. Through Genie, its mobile internet business, and through innovations
at BT Cellnet and its other ventures, mmO2 has built a strong presence in
mobile data. In addition, its 3G test bed in the Isle of Man will give early
visibility of how customers will react to 3G technology and applications.
Notes to editors
mmO2 plc has wholly owned operations in the UK (BT Cellnet), Germany (VIAG
Interkom), The Netherlands (Telfort Mobiel), the Republic of Ireland (Esat
Digifone) and the Isle of Man (Manx Telecom). mmO2 plc also includes Genie,
which is one of Europe's leading mobile internet businesses. mmO2 plc owns
third generation licences to operate 3G mobile services in the UK, Germany and
the Netherlands - all territories where it has already launched GPRS services.
It expects to apply for a 3G licence in Ireland when the application process
commences.
mmO2 plc applies to the holding company and O2 will be the brand of the
customer facing businesses of mmO2 plc.
This press announcement, which has been prepared by and is the sole
responsibility of mmO2 plc, has been approved solely for the purposes of
section 57 of the Financial Services Act 1986 by Merrill Lynch International,
Morgan Stanley & Co. International Limited and Schroder Salomon Smith Barney
which are regulated in the UK by The Securities and Futures Authority Limited.
Merrill Lynch International, Morgan Stanley & Co. International Limited and
Schroder Salomon Smith Barney are advising mmO2 plc and British
Telecommunications plc in relation to the proposed demerger and no-one else
and will not be responsible to anyone other than mmO2 plc and British
Telecommunications plc for providing the protections afforded to the customers
of Merrill Lynch International, Morgan Stanley & Co. International Limited and
Schroder Salomon Smith Barney in relation to the proposed demerger.
This announcement does not constitute, or form part of an offer, or
solicitation of an offer, to purchase or subscribe for securities.
Schroder Salomon Smith Barney is the trading name of Salomon Brothers
International Limited. Schroder is a trademark of Schroders Holdings plc and
is used under licence by Salomon Brothers International Limited.
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Inquiries about this news release should be made to the BT Group newsroom on
the 24-hour number: 020 7356 5369. From outside the UK, dial + 44 7356 5359,
or to Derek Bainbridge/Catriona Booth, Brunswick, 020 7404 5959.
More information about the company can be accessed at the website: www.O2.com