Slide 1: Cover letter to ASX: Analyst briefing - REACH Loan Rearrangement
14 Aprit 2003 The Manager Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Office of the Company Secretary Level 44 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA Telephone 03 8634 6400 Facsimile 03 9632 3215
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Slide 3: Background
Background * REACH has agreed in principle with its banking syndicate to rearrange its US$1.5bn non-recourse loan. * Over the past few years the international wholesale telecommunications market and particularly the sub-sea cable sector has been experiencing extremely volatile market conditions. — t
Slide 4: Key Features of Loan Rearrangement
Key Features of Loan Rearrangement Cash flow neutral to Telstra. Telstra and PCCW remain 50/50 shareholders in REACH. Improved schedule of loan repayment. Decrease in loan balance outstanding by US$300m to US$1.2bn. Removal of financial covenants. Loan remains non-recourse to shareholders. Telstra a
Slide 5: Transaction Overview
Transaction Overview REACH * US$50m escrow account of US$190m Converting Slide 4
Slide 6: Capacity Prepayment Utilisation
Capacity Prepayment Utilisation REACH Utilisation of capacity determined | by quarter end cash surplus Slide 5
Slide 7: Status of REACH: Post Loan Rearrangement
Status of REACH: Post Loan Rearrangement + Telstra and PCCW continue to be 50/50 shareholders in REACH. * Syndicated loan facility continues to be non-recourse. * Telstra and PCCW make equal capacity pre-payments to REACH to enable REACH to reduce its debt to banking syndicates to US$1.2bn. + Intere
Slide 8: Appendix: Financial Impact on Telstra Corporation
Appendix: Financial Impact on Telstra Corporation * Pre-payment of future capacity of US$143m which will be benchmarked against market prices at least annually. « Cash flow neutral: Capacity pre-payment is funded by partial redemption of US$190m converting note. * The capacity pre-payment will be re