Turk Telekom Owner Said to Seek Debt for $1.5 Billion Payout

Ojer Telekomunikasyon AS, the majority owner of Turk Telekomunikasyon AS (TTKOM) controlled by Saudi Oger Ltd., is seeking $4.75 billion of loans to pay a $1.5 billion dividend and refinance debt, according to three people with knowledge of the deal.

The company, known as OTAS, is seeking a five-year $500 million term loan, an eight-year $3 billion facility and a $250 million credit line to be provided by Akbank TAS and Turkiye Garanti Bankasi AS, said the people, who asked not to be identified because the transaction is private.

The loans are being marketed to a wider group of lenders, according to a statement from banks arranging the loan. The bookrunners of the transaction are Akbank, BNP Paribas SA, BNP Paribas Fortis SA, Citigroup Inc., Deutsche Bank AG, JPMorgan Chase & Co. and Garanti Bank, it said.

Banks have also underwritten a $1 billion two-year bridge loan, according to the statement. Bridge loans are often used as backstops to bond offerings or longer-dated bank debt.

Mazen Fayed, director of corporate communication at Saudi Oger, didn’t return a telephone call and an e-mail seeking comment on the debt.

OTAS bought a 55 percent stake in Turkey’s largest telephone company at an auction in 2005. It raised about $3.7 billion of loans to back the $6.55 billion deal and then borrowed a further $1.35 billion from lenders in 2011, according to data compiled by Bloomberg. Turkey’s Treasury own about 32 percent of the Ankara-based telecommunications operator and is considering selling a sale of 6.68 percent stake, it said in January.

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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