Tower One Wireless Corp. (OTCMKTS: TOWTF) has just entered into a long-term debt financing agreement with Itaú Corpbanca Colombia SA, and another new local partner in Colombia. The agreement is for a total loan of US $ 25,000,000.
Itaú will advance 75% of the total loan amount, which is to be secured against the newly completed towers of Tower One (built under the financing agreement). This must be advanced in two installments with interest payable by the company to Itaú every three months. The interest is at the rate of 4.615% + Indicador Bancario de Referencia (IBR), for the first tranche. For the second tranche, the interest will be 4.39% + IBR. The term of the loan is 9.5 years.
The remaining 25% of the loan must be provided by the local partner. The accrued interest is at the rate of 6.2% per annum. Tower One must repay the principal, as well as the accrued interest on this loan amount (25% of the total paid by the local partner), at the earliest of the choice of the company to acquire the participation of the local partner in the agreement of debt financing or the provision of the towers company, as mentioned above.
Alejandro Ochoa, CEO of Tower One Wireless Corp, says this funding and partnership allows them to expand their plans to connect Colombia. The product is to be used to deploy more than 300 towers within the next 12 months. To date, more than 400 laps are in preparation!