Forthnet to issue bonds to refinance debt

Greek telecoms operator Forthnet will issue two bond loans totaling 255 million euros ($287.36 million) to refinance outstanding debt, the company said on Wednesday.

Forthnet said that its board approved the terms to refinance existing loans by issuing two new bonds to raise 78.46 million euros and 176.54 million euros, both with an 8-year maturity and floating interest rate.

The board also approved the issue of a convertible bond of up to 99 million euros ($111.49 million) with pre-emptive rights for existing shareholders. The bond will have a nine-year maturity and proceeds will be used to pay 70 million euros as part of the refinancing plan and boost working capital. [Reuters]