Idea Cellular plans another round of debt restructuring

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Idea Cellular plans another round of debt restructuring

April 15, 2005

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Idea Cellular is planning to restructure its debt portfolio by replacing the existing debt with a $1 billion syndicated loan. The company has hired a number of global banks to arrange the fund mobilisation. At present, Idea's total debt is around $1 billion but it comprises various loans with different terms and conditions. The company is planning to migrate the existing loans to a common single security package. The proceeds of the syndicated loan will be used to refinance earlier high-cost debt. This move is expected to reduce interest costs by more than half, from 1112 per cent to 6-7 per cent.