Axtel Financing Avantel Buy

Axtel, the Mexican telecom, is out with a $518 million financing for its acquisition of Avantel through Citigroup and Credit Suisse. A $208 million five-year term loan to refinance Avantel debt and a $310 million 18-month bridge are out to MLAs and the transaction should close early in 2007. The acquisition is slated to close this year. Citigroup is the indirect controlling shareholder in Avantel and is taking up to a 10% equity stake in Axtel.