Milbank Represents Arrangers of $300 Million Term Facility Loan for Nextel Telecomunicações Ltda
Largest Syndicated Loan by Dutch Development Finance Company
WASHINGTON, DC, October 29, 2007 – In the largest syndicated loan ever extended by the Dutch Development Finance Company (FMO), Brazilian telecoms operator Nextel Telecomunicações Ltda. has obtained a $300 million term loan. The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by partner Glenn Gerstell, represented FMO and Standard Bank Plc as the Arrangers of the facility. The transaction continues Milbank’s leading record in Latin American telecom financings.
Commenting on the deal, Mr. Gerstell noted, “Nextel was looking for an attractive and cost-efficient way to fund its long term capital expenditures for its rapidly growing Brazilian operations – and FMO was the perfect solution. FMO and Standard Bank were able to craft a deal that protected the lenders in an emerging market while at the same time providing the borrower with the greater flexibility that it needs in the future. Negotiating and drafting the contractual arrangements that satisfy all parties is an assignment we know how to do well, based on our long experience in Latin American telecom financing.”
In addition to Mr. Gerstell, the Milbank team representing the lenders included associates Gavin W. McKeon and Steven J. Driscoll.
FMO together with Standard Bank acted as Joint Arrangers of the $300 million term facility loan, which will be used by Nextel to support its rapidly growing “push to talk” wireless network in Brazil. Nextel is the Brazilian subsidiary of NII Holdings, Inc. (Reston VA), formerly known as Nextel International.Like most FMO term loans, the Nextel facility is structured to allow commercial banks to participate in the financing through the purchase of participations from FMO. In addition to Standard Bank, 13 commercial banks participated in a successful syndication of the facility, which at $300 million, represents the largest-ever syndicated loan with participations extended by FMO.
The lenders were represented as to US law by Milbank, who negotiated and drafted the key financing documents, and as to Brazilian law by Ulhoa Canto Rezende e Guerra –Advogados. Nextel was represented by Williams Mullen as to US law, and by Pinheiro Neto Advogados as to Brazilian law, with Ricardo Guarieb of NII Holdings providing in-house counsel.
About Milbank
Active in Latin America for many years, Milbank has played a prominent role in some of the region’s most innovative and complex transactions, from project financings and restructurings to securities offerings and IPOs. The Firm is headquartered in New York with offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, Singapore, Tokyo, and Washington, DC.