South Africa’s Cell C has issued €240m of senior secured notes, aimed at funding capex and other cash requirements, the company said.
The new “first priority” notes will supplement similar notes worth €160m, taking the total amount in…
South Africa’s Cell C has issued €240m of senior secured notes, aimed at funding capex and other cash requirements, the company said.
The new “first priority” notes will supplement similar notes worth €160m, taking the total amount in issuance to €400m. Bondholders last year agreed to extend the maturity of the previous €160m from July 2015 to July 2018.
The new euro notes will also mature in July 2018, with a coupon of 8.625%.
MedInvestment Bank, Bankmed and MedSecurities Investment acted as arrangers.
According to Cell C CEO Jose Dos Santos, the oversubscribed debt issue represents “a further sign of the tremendous confidence our bond investors have in our strategy, which has been underpinned by a strong turnaround in the company’s performance over the past 18 months. This issuance also reflects the company’s excellent track record of servicing its debt obligations.”
Earlier this year, the perennial target was put up for sale by its parent, Oger Telecom, which hired Goldman Sachs to look at options. Sources have subsequently played down the likelihood of a sale materialising in the near term, due to the mobile operator’s high leverage and poor competitive position.
The operator has struggled to compete against Vodafone-controlled market leader Vodacom and number two carrier MTN, which itself has been linked with an acquisition of fixed-line incumbent Telkom.
