Dubai: OSN, the region’s leading Pay-TV network, has secured a $400 million (Dh1.47 billion) facility from a syndicate of 11 international and regional banks that was nearly two times oversubscribed.
The proceeds will be used primarily to strengthen OSN’s exclusive and premium content, particularly sport, as well as to develop innovative technology platforms that enhance viewer experience.
Barclays Bank PLC, BNP Paribas and Mashreq Bank PSC — all three with long-standing relationships with OSN — served as lead arrangers and book runners, while National Bank of Kuwait, Citibank UAE, Commercial Bank of Dubai, First Gulf Bank PJSC, HSBC Bank Middle East Ltd., Société Générale, JP Morgan Chase Bank and Credit Suisse AG completed the syndicate.
“The successful oversubscription of this facility and breadth of the participating financial institutions is testament to the international reach of OSN’s business model and strategic lens of its top management. We are delighted to continue our partnership with OSN as they progress along their growth trajectory,” said Rezwan Mirza, managing director and head of corporate banking for the Middle East at Barclays.
Leveraging the competitive market pricing, the unsecured five-year facility includes a term loan of $255 million and revolving credit facility of $145 million. The term loan is repayable on a quarterly basis in equal instalments.
“The highly successful closing of the new syndicated financing facility is an acknowledgement of the financial strength and the banking community’s confidence in OSN’s business model,” said David Butorac, chief executive officer of OSN.
He said the level of oversubscription and participation of banks from the Gulf region, Europe and North America further confirm the trust in OSN’s strategy and performance.
“The new financing facility takes advantage of the favourable market conditions to strengthen our financial fundamentals and drive our expansion plans,” Butorac said.
