Business Irish

Friday 23 June 2017

Lenders ring the changes at Eircom

Eircom Group Headquarters
Eircom Group Headquarters

Eircom lenders have agreed to give the company three extra years to pay the bulk of its debts.

On May 1 the telecoms company asked lenders to extend until 2022 maturity of a €1.9bn term loan "B2" which was due to mature in 2019 and a smaller €108m loan falling due in 2017.

Lenders have agreed by a 98pc majority to extend the larger loans.

The so-called "amend and extend" consent secured from lenders includes giving Eircom permission to spend up to €500m on acquisitions and potentially sell up to €50m of property, including a telephone exchange on Crown Alley in Dublin's Temple Bar.

Securing the consent from its lenders boosts Eircom's operational and financial flexibility.

Irish Independent

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