GTS Central Europe takes up EUR 330mln loan for acquisitions and investments

GTS Central Europe, infrastructure-based provider of telecommunications services in Central and Eastern Europe, with operations in Romania, has secured a loan of EUR 330 million. The new senior debt facility provides the company with significant liquidity to fund new both acquisitions and network investment.

A consortium of leading banks from throughout Europe participated in the facility.

The proceeds will be used to refinance existing bank indebtedness, and more than 50 percent may be flexibly used for acquisitions, capital expenditures or repayment of shareholder loans.

For its 20 years of operating history, GTS has grown organically and through the acquisition of companies and assets in the CEE region.

The company will build upon its past and use the liquidity to accelerate growth and enhance its regional fiber and data center network, says the press release.

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“In these uncertain times, we see opportunity and are privileged to have a great team of banks and shareholders from across Europe and the U.S.A supporting the company,” says Gerald Grace, CFO, GTS.

GTS owns and operates an extensive fiber optic and data center network throughout the region, in the Czech Republic, Hungary, Poland, Romania and Slovakia.

GTS Central Europe has nearly 40,000 business, carrier and government customers.

In Romania, the company posted revenues of EUR 23.5 million in Romania last year, at a similar level to the financial indicators reported in 2010.

 Otilia Haraga