Cable & Wireless Optus has signed a $2 billion loan facility with 10 major domestic and international banks. The deal builds on the success of the company in diversifying and lengthening its maturity profile over the past 18 months.

Norman Gillespie, Deputy Chief Executive and Chief Financial Officer, Cable & Wireless Optus said the refinancing is a significant achievement given the current global environment for telecommunications financing.

"I am very pleased with the continuing support of the banks and their ability to make a significant commitment to Cable & Wireless Optus.

"This support is a vote of confidence in the success of Cable & Wireless Optus and its future potential. We have been doing what we said we would do and revenue and profit growth have continued to be strong," Mr Gillespie said

"The refinancing further confirms our strong financial position and ensures that we retain our financial flexibility going forward. We currently have in excess of $2bn in undrawn committed facilities.

"It reinforces Cable & Wireless Optus' strong position in the telecommunications sector. We are fully funded, our financing is in place for 3G and this loan facility completes the picture for our medium term needs," he said.

The initial bank syndicate will comprise of joint lead arrangers - ABN AMRO, ANZ Investment Bank, Barclays Capital, Commonwealth Bank, The Chase Manhattan Bank, Deutsche Bank and Toronto Dominion. Co arrangers are BNP Paribas, Citibank and Royal Bank of Canada. The refinancing has a term of 364 days with the option to extend for a further 364 days.

The refinancing follows successful capital markets issues in Australia, Europe and the USA this year. It also comes on the back of Standard & Poor's recently reaffirmed A- rating of Cable & Wireless Optus.

For more information:
Stephen Woodhill
Cable & Wireless Optus
Phone: 02 9342 7850