RLPC-Bankers ready 5 bln euro financings for rival Portugal Telecom bids

viernes 7 de noviembre de 2014 12:56 GYT

By Claire Ruckin

LONDON Nov 7 (Reuters) - Bankers are working on two loan and bond financing packages of around five billion euros (6.21 billion US dollars) backing bids for Portugal Telecom, which is being sold by Brazilian telecom company Oi, banking sources said on Friday.

Telecoms group Altice SA bid 7.03 billion euros for Portugal Telecom earlier this week, which will expand its presence in the region.

Altice, which is controlled by Franco-Israeli billionaire telecoms entrepreneur Patrick Drahi, already owns two small cable companies in Portugal.

Private equity firm Apax is also expected to make a rival bid for Portugal Telecom, either on its own, or by teaming up with buyout firm Bain Capital, the banking sources said.

Apax and Bain declined to comment. Oi, Portugal Telecom and Altice were not immediately available to comment.

Bankers are working on two separate debt financing packages, which both include a mix of leveraged loans and high yield bonds and will be denominated in euros and dollars.

The financings are expected to be four to five times Portugal Telecom's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of approximately 1.1 billion euros, the banking sources said.

Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan and Morgan Stanley are financing Altice's bid for Portugal Telecom, which is expected to total 5 billion euros or more, the bankers said.   Continuación...