Outremer Telecom opens new credit line, acquires capacity in Caribbean

Groupe Outremer Telecom, the leading alternative telecom operator in French overseas departments, announced the opening of a new credit line, the purchasing of IRU for Caribbean submarine cables and the acquisition of sales outlets in the French West Indies and French Guiana.

Groupe Outremer Telecom signed a €77 mln financing contract with BNP Paribas, Societe Generale, Financiere Oceor and Bred which contributed to the repayment of the €30 mln outstanding balance of the senior debt created during the LBO of 2004.

Groupe Outremer Telecom henceforth has a stronger investment capacity that will enable it to accelerate its development.
It also acquired the IRU (Indefeasible Rights of Use), the operating rights for a telecom network owned by a third-party operator, for 15 years for a total of around €6 mln, for Caribbean submarine cables.

This acquisition will allow the Group to record substantial savings on bandwidth capacity rental in the Caribbean zone, and thus to improve its profitability and the quality of service provided to its subscribers.

Groupe Outremer Telecom also acquired 17 new sales outlets in the French West Indies and French Guiana, taking its distribution network to 83 stores on the territories, in which it operates. These sales outlets, which were thus far Outremer Telecom franchises and exclusively distributed ‘Only’ offers, were acquired for just over 1 mln euros. This purchase, which is totally in
line with Outremer Telecom’s sales momentum strategy on the territories on
which it is present, will enable the Group to broaden and optimise the direct distribution of its offers and better coordinate local sales actions. The acquisition of these sales points will also allow the Group to reduce its distribution costs in the French West Indies and French Guiana, and hence its unit client acquisition costs.

Founded in 1986, Groupe Outremer Telecom has established itself in the French overseas departments (Martinique, Guadeloupe, French Guiana and Reunion) as the leading alternative telecom operator able to offer a full range of fixed line, mobile and internet access services for both residential and business customers.