Published: 12 November 2020
New Long Term Financing Facilities Closed by Net1 AS
Oslo, 12 November 2020 – Net1 International Holdings AS (“Net1 AS” or the “Group”, NOTC Ticker: Net1) announces closing of a $75.5m secured debt facility for its subsidiary, Mobile Internet Holdings B.V (“MIH”) which refinances existing debt of $40m, and provides an additional $35m of new long-term funding, all expiring in 2027. The facility is provided by a group of lenders comprising Gemcorp Capital, InfraCo Asia Investments (“InfraCo Asia”), and OP Finnfund Global Impact Fund I. In addition, Net1 AS has received a further $6m of new loans from Rasmussengruppen & Sampoerna, secured on its shares in its Philippines operations. As part of the new loans, the Group secured an extension of the maturity dates on all its existing bridge loans with Rasmussengruppen & Sampoerna to 2027.
Attachments: Presentations titled “Summary & Key Terms of New Financing Structure”
NEW $75.5m LONG TERM FINANCING
The Group’s subsidiary, MIH, has entered into a $75.5m senior secured loan facility, secured on the shares and assets of shares and assets of its Indonesian operations. Net1 AS has also increased loan facilities from Rasmussengruppen and Sampoerna by $6m to a total of c.$20.5m, which are secured on the shares of its Dutch subsidiaries which hold its 52% economic interest in Net1 Philippines. Both the $75.5m MIH facility and the $20.5m Net1 AS facility have long-term maturity dates (expiry 2027).
The new $35m facility will be advanced in 3 tranches: $20m at closing in November 2020, $7.5m by end of March 2021 and $7.5m by end of September 2021. The second and third draw-downs are subject to certain conditions, as outlined in the attached presentation, which provides further information on the structure & key terms and conditions.
COMMITMENT TO LAUNCH $5m SHARE ISSUE BY MARCH 2021
As part of the two financing facilities, Net1 AS will seek to raise $5m in a share issue by March 2021. This is one of the conditions that the Group and its subsidiaries needs to fulfil to access the second draw-down.
Rasmussengruppen & Sampoerna have committed to underwrite $1.5m out of $5m of this share issue. Further information on the share issue will be provided at a later stage.
“The completion of this financing enables our Indonesian business to expand its network and re-locate sites, providing us with the opportunity to support the underserved rural broadband markets in Indonesia” said JD Fouchard, Chairman of Net1 AS.
“The long-term financings support our post-financing strategy & demonstrate the exciting potential of our business” added Fouchard.
“We are delighted to have closed this financing following an extensive due diligence process with the consortium of 3 lenders. In addition to our existing partner, Gemcorp Capital, we are extremely pleased to have on board InfraCo Asia Investments and OP Finnfund Global Impact Fund I as part of the lending consortium” said Amit Vithlani, Group CEO of Net1 AS.
ABOUT NET1 INTERNATIONAL
Net1 International has investments in 4G LTE operations in Philippines and Indonesia.
Philippines has a population of 104 million, and Net1 Philippines now has a spectrum portfolio consisting of: 20 MHz bandwidth on the LTE-enabled 450MHz frequency in addition to the 20MHz it owns in the 3.5GHz band. It also owns 200MHz on the 24450MHz-24650MHz band.
Indonesia has a population of 261 million, and Net1 Indonesia has a total 15MHz of bandwidth on the LTE-enabled 450MHz band.
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