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UPDATE 1-Russia's MTS restructures 300 mln euro loan

Published 11/03/2009, 12:47 PM
Updated 11/03/2009, 12:51 PM

* Gets lower interest, extended maturity

* Restructures 150 million euros into roubles

* Secures 100 million euro revolving credit line

(Adds MTS comment, details, background)

MOSCOW, Nov 3 (Reuters) - MTS, Russia's top mobile phone operator, said on Tuesday that Gazprombank had agreed to restructure its 300 million euro ($438.9 million) loan as debt market conditions improved.

The company said the new terms provided for lower interest, longer maturity and a conversion of a significant part of the loan into Russian roubles.

"The amendment to the terms of the agreement is part of the MTS' ongoing effort to reduce its overall interest rate expense by taking advantage of improved credit market conditions," MTS, part of services conglomerate Sistema, said.

MTS, which had so far repaid 50 million euros of the original credit facility, said in a statement it restructured 150 million euros into Russian roubles with maturity in Sept. 2012 and annual interest rate of 13 percent.

The interest on the remainder was lowered to 8 percent from 12 percent originally, while the maturity of the loan was extended by more than a year to Sept. 2012 from June 2011.

As part of the restructuring, MTS has also secured a 100 million euro revolving credit line from the bank, with maturity in Sept. 2012 and annual interest of 8 percent.

MTS' New-York listed stock edged up 0.75 percent by 1634 GMT, slightly outperforming its main competitor, Vimpelcom, which was trading up 0.11 percent. ($1=.6835 Euro) (Reporting by Maria Kiselyova; Editing by Jon Loades-Carter)

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