Aircel is likely to tie-up with the infrastructure finance firm IDFC and financial services company Credit Suisse for refinancing its existing debt with loans worth Rs 80 million.
IDFC and Credit Suisse are likely to lend Rs 45 billion and Rs 34 billion each to Aircel. The operator plans to use the funds to repay a part of its Rs 240 billion debt due in January 2014. The new loans will essentially substitute the old ones. The two lenders have proposed a five-year moratorium followed by a five-year repayment cycle to Aircel for the restructured loans. Meanwhile, Aircel has proposed a period of 10 years to repay the loans.
With the Indian Government expected to come out with merger and acquisition guidelines by September 2013, the debt restructuring exercise is expected to make Aircel a potentially stronger entity for acquisition or merger.
Currently, Malaysia-based Maxis Communications holds 74 per cent stake in Aircel and the India-based Apollo Group holds the remaining 26 per cent stake.
