VimpelCom To Support Improved Capital Structure Of Italian Unit WIND

(RTTNews) - Netherlands-based telecommunications services operator VimpelCom Ltd (VIP) said Wednesday its indirectly owned subsidiaries WIND Telecomunicazioni S.p.A and Wind Acquisition Finance S.A. are considering a multi-step refinancing plan to improve WIND Telecomunicazioni's capital structure.

WIND Telecomunicazioni S.p.A (WIND) and Wind Acquisition Finance S.A. (WAF) are seeking the consent of lenders to amend WIND's senior facilities agreement (SFA) to provide operational flexibility and facilitate the implementation of the refinancing plan.

The amendments would include changes to provide sufficient headroom under the financial covenants and up to an additional 800 million euros plus associated transaction costs, fees and expenses in debt incurrence and distribution flexibility to permit a refinancing of the pay-in-kind notes guaranteed by WIND's immediate parent, Wind Acquisition Holdings Finance (WAHF).

The plan envisages a concurrent refinancing of WAF's junior secured notes maturing in 2017, as permitted by the SFA.

The refinancing plan also contemplates a cash injection of 500 million euros by VimpelCom, which will be a condition to the refinancing of the WAHF notes and the effectiveness of certain other elements of the amendment request.

The aim of the refinancing plan is to provide the company with significant interest cost savings, stronger cash flow generation, a deleveraging trajectory and an extended maturity profile, VimpelCom said.