Saudi Arabia’s Mobily to be in talks for SAR 8 bln debt...

Saudi Arabia’s Mobily to be in talks for SAR 8 bln debt refinancing

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Mobily's refinancing

Saudi Arabian mobile-phone operator Etihad Etisalat Co. started talks with creditors about refinancing 8 billion riyals ($2.1 billion) of debt to get better terms, according to people with knowledge of the matter.

The company, which is being advised by boutique investment bank Verus Partners, wants to lower interest costs and extend the length of the debt, the people said.

The sources added that these talks came after Mobily shelved plans to sell telecom towers, whose sale proceeds would have been used to repay the debts.

In May, Mobily reached an agreement with all banks to waive default related to the breach of leverage covenant in connection with its debt facilities.