Indonesia's Mobile-8 gets $70 million loan from Lehman Brothers
Jakarta (Antara News
) - Lehman Brothers has given Cellphone carrier PT Mobile-8 Telecom, a 76.01 pct-owned unit of PT Bimantara Citra, a 70 mln-usd loan facility, Mobile-8 said.
The rate of interest is the LIBOR plus 6 pct, XFN-Asia reported citing the company.
The loan facility is secured against 70 mln Mobile-8 warrants. However,
the terms for conversion of the warrants will depend on the pricing of
Mobile-8's initial public offering (IPO), which is slated for November.
Bimantara president Hary Tanoesoedibjo said Mobile-8 would use the
greater part of the loan and the proceeds of its IPO to expand its cellphone network in Sumatra and Kalimantan.
He said Mobile-8 aimed to expand the capacity of its network to 4 mln
subscribers by the end of next year and to 7 mln by the end of 2008, from the estimated 2.2 mln at the end of this year.
"Mobile-8 has gone through its most difficult time as a new operator. It
is now entering a new stage where its subscriber base, revenue and profit can grow significantly," Tanoesoedibjo said.
Mobile-8 had 1.4 mln subscribers at the end of last month. (*)