Jamaica-based telco Digicel is planning a private placement of US$925m of senior notes.
The company, owned by Irish billionaire Denis O’Brien and incorporated under the laws of Bermuda, said in a statement that it plans to use the proceeds to…
Jamaica-based telco Digicel is planning a private placement of US$925m of senior notes.
The company, owned by Irish billionaire Denis O’Brien and incorporated under the laws of Bermuda, said in a statement that it plans to use the proceeds to repurchase all of its US$800m 8.25% senior notes due 2017 in a concurrent tender offer and pay related fees and expenses, including a tender premium for the redemption.
Any remaining proceeds will be used for general corporate purposes.
The notes will not be registered under the US Securities Act and may not be offered or sold in the US without registration or exemption from registration requirements.
Digicel operates in 33 markets internationally – 26 in the Caribbean and Central America and six in Asia-Pacific.
Fitch said it expects to rate the notes, due 2023, B/RR4. The agency said its ratings for Digicel reflect its solid performance, generation of cash flow from operations, leading market position, geographic diversification, strong brand recognition and chances of maintaining stable credit metrics over the medium-term. On the flip side, Fitch said the ratings are tempered by the company’s aggressive shareholder distribution, high leverage and exposure to low-rated countries.
