Digicel Limited has completed a US$1-billion private corporate bond offering, which carry a six per cent coupon rate.

The bond matures in year 2021.

Just over half the proceeds will pay for the early redemption of the telecom's 12 per cent bonds due to mature in 2014.

Digicel said the rest of the funds could be used for capital expenditures, acquisitions or to pay dividends to Digicel Group Limited, which is also owned by Irish billionaire Denis O'Brien.

"With the strong investor interest, Digicel was able to issue US$1 billion at one of the lowest coupons ever for a single B-rated corporate issuer in the Latin and Caribbean debt markets," said Blake Haider, a director with Citi, in a release issued by Digicel.

Citi, JP Morgan, Credit Suisse, Barclays, Deutsche Bank and Davy's acted as initial purchasers of the bond offering.

Digicel's offer to buy back its 2014 bonds expire on March 18.

On Tuesday, Digicel announced that it had already received and accepted tenders amounting to 51.49 per cent or US$262.59 million of the total US$510 million offer.

business@gleanerjm.com