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Vimpelcom Looking to Refinance Debt at Italian Subsidiary

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Russia's Vimpelcom is looking to refinance the debt at its ailing Italian subsidiary, Wind and will offer to inject more cash into the company if the debt holders agree to its plans.

The amendments would include changes to provide sufficient headroom under the financial covenants and up to an additional EUR 800 million plus associated transaction costs, fees and expenses in debt incurrence to permit a refinancing the debt.

The refinancing plan also contemplates a cash injection of EUR 500 million by VimpelCom.

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

Wind has debt of USD14.5 billion and there has long been speculation that it may merge with a rival network, most likely Hutchison Whampoa's Three network.

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Tags: wind italia  vimpelcom  Italy