Digicel to repurchase bond debt
Published:Sunday | March 23, 2014 | 12:00 AM
Digicel Group Limited will use the proceeds of a new bond to buy back senior notes due in 2018, the company said Wednesday.
The placement of the new senior notes aims to raise US$1 billion. The bond will have a coupon of 7.125 per cent and will mature in 2022.
Digicel Group Limited is owned by Denis O'Brien and incorporated in Bermuda.
The net proceeds from the bond offer are to be used for repurchasing the 10.50 per cent notes due in 2018 "in a concurrent tender offer and the related consent solicitation," a Digicel news release said.
The proceeds are also for paying any related fees and expenses, including applicable tender premiums and accrued interest on the 2018 bond, and for redeeming any notes "that remain outstanding after the completion of the tender offer," the release said.
Any remaining net proceeds will be used "for general corporate purposes, which could include capital expenditures, investments, acquisitions or debt repayment," the release said.
The company has retained Citigroup Global Markets Inc to serve as the dealer manager and solicitation agent for the tender offer and consent solicitation.
"The tender offer is scheduled to expire at 11:59 p.m., New York City time, on April 15, 2014, unless extended or earlier terminated by the company," the release said.