OSN Arabia, the biggest pay television network in the Middle East, has secured a $400 million syndicated loan from 11 banks to fund its expansion plans.
The plans include boosting the number of programmes it broadcasts, especially when it comes to sports.
The Dubai-based network said it agreed a five year unsecured term loan of $255 million and a so-called revolving credit facility of $145m. The term loan will be paid back on a quarterly basis in equal installments. Pricing for the loan was not disclosed but the request for the funds was oversubscribed nearly twice by banks.
“The new financing facility takes advantage of the favourable market conditions to strengthen our financial fundamentals and drive our expansion plans,” said David Butorac, the chief executive officer of OSN, referring to the low interest rate environment.
“In the past months, OSN has introduced several industry first initiatives and signed international partnerships for exclusive and first access to premium content.”
The funds will also allow the pay television network, which has over 150 channels, to consider acquisitions, it said.
Barclays Bank, BNP Paribas, and Mashreq bank were the lead arrangers for the loans.
mkassem@thenational.ae
Follow The National's Business section on Twitter