Johannesburg-based Cell C has instructed MedInvestment Bank to issue three-year euro-denominated notes before the end of the month.
Earlier this year the South African operator was put up for sale by its parent, Oger Telecom, which hired Goldman Sachs…
Johannesburg-based Cell C has instructed MedInvestment Bank to issue three-year euro-denominated notes before the end of the month.
Earlier this year the South African operator was put up for sale by its parent, Oger Telecom, which hired Goldman Sachs to look at options for the business.
However, Cell C is highly leveraged and observers have previously told TelecomFinance that its balance sheet could be a hindrance to Oger executing a disposal.
Cell C has not said how much it hopes to raise in its latest offering but, according to a Reuters report, the new notes will mature in 2018 and carry an 8.625% coupon.
In mid-2014 Cell C pushed out maturities on €160m notes that were set to mature next month, which at the time the operator said would allow it to “channel equity and cash generated in the business to increase its capacity to continue to grow the company”.
The operator has been struggling to compete against Vodafone-controlled market leader Vodacom and number two carrier MTN, which has been linked with an acquisition of the country’s fourth player, partly state-owned Telkom.
