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Telecommunications industry

Compania de Telefonos de Chile Secures $275 Million Syndicated Loan

Strategic Insights

— 1 min read

Compania de Telefonos de Chile S.A., the largest telecommunications enterprise in Chile, has completed negotiations for a five-year US$275 million syndicated loan. The loan, sponsored by ABN AMRO, Argentaria, Caja Madrid, J.P. Morgan, and Swiss Bank, will finance the company's 1995 and 1996 capital expenditure program, which includes connecting 210,000 new lines and extending the Long Distance and Cable Television networks. The financing terms demonstrate the trust the banks have placed in CTC and Chile, despite the adverse situation caused by the Mexican peso devaluation.

Key Takeaways:

  • Compania de Telefonos de Chile S.A. has completed a $275 million syndicated loan, sponsored by ABN AMRO, Argentaria, Caja Madrid, J.P. Morgan, and Swiss Bank.
  • The loan will finance the company's 1995 and 1996 capital expenditure program, valued at over $350 million.
  • The program includes connecting 210,000 new lines, extending the Long Distance and Cable Television networks, and other infrastructure development initiatives.
  • The financing terms demonstrate the trust the banks have placed in CTC and Chile, despite the adverse situation caused by the Mexican peso devaluation.
  • Compania de Telefonos de Chile is the largest telecommunications enterprise in Chile, providing services in 77% of the country's territory, where 92% of the population resides.
  • The company operates a cellular network in two principal metropolitan areas of Chile, Santiago and Valparaiso.
  • The loan will bear an interest rate of LIBOR plus 85 basis points.

Statistics:

  • US$275 million: the amount of the syndicated loan secured by Compania de Telefonos de Chile S.A.
  • 210,000: the number of new lines to be connected as part of the capital expenditure program.
  • US$350 million: the value of the 1995 and 1996 capital expenditure program.
  • 77%: the percentage of Chile's territory where Compania de Telefonos de Chile provides services.
  • 92%: the percentage of Chile's population residing in the territory where the company provides services.
  • 2 principal metropolitan areas: the locations where Compania de Telefonos de Chile operates a cellular network, Santiago and Valparaiso.

Sources:

  • Compania de Telefonos de Chile S.A. press release (PRNewswire, March 20, 1995)
  • Contact: Kristopher W. Brigham, 011-562-696-1147
  • Contact: Felicia Vonella, Dewe Rogerson Inc., 212-688-6840

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