New Zealand telecommunications operator 2Degrees is adding $50 million in senior debt capacity to its balance sheet as it refinances an existing $200 million debt facility and bumps it up to $250 million, according to the company's parent, US-based Trilogy International partners.
Lead managed by Dutch multinational ING Bank, the new arrangement also includes a $35 million "accordion facility" which Trilogy said could be used in the future to fund capital expenditures.
"The completion of this refinancing, which is an upsize of our existing debt facility, is another vote of confidence in our company," 2Degrees chief executive Stewart Sherriff said in the Trilogy statement. “Third-party lenders are effectively validating our business case. The new loan provides borrowing capacity for further investments in the 2Degrees business."
2Degrees lifted net profit 33 percent to $19 million in calendar 2017, with revenue gains outpacing costs and tax credits assisting.
Between establishment in 2009 and the end of 2015, the company clocked up accumulated losses of $396.8 million as it invested heavily in a national mobile network and moved into fixed-line telephone and broadband services to allow it to compete across the full range of telecommunications services. By the end of 2017, its 4G coverage reached 96 percent of the population, up from 79 percent in the prior year.