OSN closes $200m financing facility
Dubai, November 24, 2013
OSN, a leading pay-TV network in the Mena region, has closed its first syndicated five-year financing facility for $200 million.
Mashreq, a leading financial institution in the UAE, acted as the sole mandated lead arranger, bookrunner and underwriter for this syndication, said a statement.
The transaction was heavily oversubscribed by internatioal and regional banks, it said. The participating banks included Barclays Bank, BNP Paribas Fortis, Citibank, HSBC Bank Middle East, and National Bank of Kuwait.
The proceeds of the facility will be utilised by OSN to further grow and strengthen its core business in line with the company’s objective to provide viewers with the ultimate entertainment experience, said the statement.
A signing ceremony was held for the deal and attended by AbdulAziz Al Ghurair, CEO Mashreq and Faisal Al Ayyar, chairman of OSN and vice chairman of Kipco, David Butorac, CEO of OSN and senior officials from the participating banks.
Al Ghurair said: “OSN has been a remarkable growth story, and Mashreq is indeed proud to be associated with one of the most successful businesses in the media sector in the region.”
Al Ayyar added: “The overwhelming response from the financial institutions to our first syndicated financing facility underlines OSN’s robust fundamentals and its tremendous growth potential. We are thankful to Mashreq for its work in managing this process and to the other banks for supporting this facility.”
Julio De Quesada, head of Corporate and Investment Banking Group at Mashreq, said: “With its platform to provide services to cater to the diverse cultural and ethnic mix for both expatriates and GCC nationals, OSN is well positioned to remain a market leader and further grow and expand its foothold, leveraging the low penetration rates in the pay-TV industry in Mena.”
Butorac OSN, added: “The pay-TV industry in the MENA region is fast-growing and has enormous growth potential. Given the changing preferences of television audiences who value premium and exclusive content that OSN is consistently focused on delivering, this potential is becoming increasingly tangible.” – TradeArabia News Service