Westpac to lend PowerTel another $40 million

Stuart Corner
Thursday, 09 November 2006 14:10

IT Industry - Deals

PowerTel has negotiated a deal with its lender, Westpac giving it access to an additional $40 million of debt funding.

Westpac has agreed to increase its total term financing commitments to PowerTel to $90 million from its current level of $50 million. PowerTel will also launch an on-market share buy-back program of up to 10 percent of its shares.

Managing director, Paul Broad, said: “We believe PowerTel’s financial prospects and opportunities have never been better and we are prepared to show our support for our shares through an on market buy back program....We will be evaluating other capital management and strategic investment options to further create value for shareholders.”

The company said that these options could include: · strategic alliance investments to support the recently announced alliance with Telecom New Zealand’s AAPT division;  capital return(s); ongoing merger and consolidation initiatives.