Moody's: Wind Hellas unaffected

Moody's Investors Service said the announcement that Hellas Telecommunications II Sarl, a holding company of Wind Hellas SA, plans to acquire a 50% stake in Tellas SA from PPC SA for €175 million plus €80 million of debt assumption does not have an immediate impact on the company's B2 corporate family rating or stable outlook.

The company will also purchase two shares from Wind Telecomunicazioni Spa to consolidate Tellas in its accounts while assuming a full management control, the agency said. Over the medium term, the company intends to purchase the remaining stake from Wind Telecomunicazioni.

The initial transaction will be financed with an up to €220 million drawdown under the company's revolving credit facility and up to €45 million in cash, which will increase the debt-to-EBTIDA ratio to about 7 times. However, Moody's believes the transaction has a good strategic rationale based on the Greek market's dynamics and that Wind Hellas will continue to generate free cash flow.

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