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. Last Updated: 07/27/2016

MTS Reaches Debt Restructuring Deal

MTS said Tuesday that Gazprombank had agreed to restructure its 300 million euro ($438.9 million) loan as debt market conditions improved.

The company said the new terms provided for lower interest, longer maturity and a conversion of a significant part of the loan into rubles.

“The amendment to the terms of the agreement is part of MTS’s ongoing effort to reduce its overall interest rate expense by taking advantage of improved credit market conditions,” MTS said.

MTS, which had so far repaid 50 million euros of the original credit facility, said in a statement that it restructured 150 million euros into Russian rubles with maturity in Sept. 2012 and annual interest of 13 percent.

The interest on the remainder was lowered to 8 percent from 12 percent originally, while the maturity of the loan was extended by more than a year to Sept. 2012 from June 2011.