30 Nov 2011
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Chorus exceeds funding expectations

A $1.35 billion syndicated bank facility has been secured by networking company Chorus as part of its demerger from Telecom New Zealand, which is official as of today.

The facility will comprise of two $675 million portions, to last three and five years.

Andrew Carroll, Chorus CFO, says the funding is in excess of expectations.

"We initially sought $1 billion in bank financing,” Carroll says, "and extended the bank facility to $1.35 billion following strong demand from domestic and foreign financial institutions.

"This means we can get on with building our fibre network with even greater financial certainty.”

Shares in Chorus have now risen to $3.31 after debuting at $2.94 a week ago. Its former parent, Telecom, has experienced a more modest rise, from $1.94 on the same date to $1.99.

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