NuRAN Wireless Inc, a specialist rural telecommunications company, has announced an agreement in principle for a senior secured credit facility with a development finance institution (DFI) that provides up to US$15mn in total funding
The purpose of the loan facility is to finance a portion of NuRAN’s planned US$30mn of expenditures linked to the installation of network infrastructure roll-out promoted by NuRAN in Cameroon and Democratic Republic of the Congo (DRC).
Proceeds will be used for Project expenditures relating to the installation of network infrastructure by NuRAN and roll out of up to 120 rural sites in Cameroon and 850 sites in DRC. The Loan Facility is conditional on, amongst other customary conditions in a financing of this nature, NuRAN raising the remainder of the US$30mn in funding for the Project or USD$15mn.
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.
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.