South African mobile operator Cell C is asking bondholders for permission to extend to 2018 the maturity of its €160m (US$215m) senior secured notes due July 2015.
Around €82.7m of this debt is held by its parent Saudi Oger, which has already given…
South African mobile operator Cell C is asking bondholders for permission to extend to 2018 the maturity of its €160m (US$215m) senior secured notes due July 2015.
Around €82.7m of this debt is held by its parent Saudi Oger, which has already given its consent to the extension, according to a statement.
The company also said it would buy back any notes, at their principal amount, that bondholders would rather cash out than extend. The bond carries an 8.625% coupon.
In a statement, CEO Jose Dos Santos said the move will allow Cell C to “channel equity and cash generated in the business to increase its capacity to continue to grow the company”.
Cell C is the country’s third-largest mobile operator and has been facing tough competition from two large rivals, Vodacom and MTN.
It, however, claims to have reported year-on-year service revenue growth of 10.5% for the second quarter of the year.
