DRC – NuRAN Wireless Inc., a specialist rural telecommunications company, has announced that it has secured US$15 million in senior secured credit facility with a development finance institution (DFI).
The purpose of the Loan Facility is to finance a portion of NuRAN’s planned US$30 million of expenditures linked to the installation of network infrastructure roll-out promoted by NuRAN in 120 rural sites Cameroon and 850 sites Democratic Republic of the Congo (DRC).
The Loan Facility is conditional on, amongst other customary conditions in a financing of this nature, NuRAN raising the remainder of the US$30 million in funding for the Project or US$15 million.
NuRAN is in advanced discussions with other funding institutions for the majority of this remaining amount.
In addition, NuRAN has already contributed approx. US$5.1 million in equity over and above the Project expenditures, which includes the first phase of 122 sites in Cameroon through the private placement proceeds previously announced and which includes Spacecom’s investment in July 2021.
The balance of funding is to be raised in cash through equity or additional debt. A holding entity for the African operations is to be established for the Project and it is expected that the balance of funding will be raised at this level.
Further debt and equity funding beyond the Project will be contemplated at the appropriate time which will allow for the completion of the build of the full 2,000 sites in DRC as well as the build of the South Sudan contract with MTN announced previously.
The Loan Facility is for a term of seven years including two years’ grace period on repayment of principle and disbursements may be requested up to 36 months following execution of definitive agreements for the Loan Facility.
The Loan Facility will be subject to standard security for this type of financing and is subject to the lender’s due diligence and customary conditions, events of default and covenants to be outlined in the definitive agreements respecting the financing.
Interest under the Loan Facility is due on all disbursed sums, and is to be paid quarterly, semi-annually or annually in arrears on predetermined payments dates.
The interest rate may be at either a fixed rate or floating as specified by the Borrower for each tranche. The floating rate includes a fixed spread above SOFR and is determined by the lenders at the time of disbursement.
The fixed rate is determined by the lenders at the time of disbursement. There is no assurance that the definitive documents for the Loan Facility will be entered into with the lenders as planned or at all.
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