UK-listed Cable & Wireless Communications (LSE: CWC) has priced US$750m of senior notes due 2022.
The notes, to be issued by finance subsidiary Sable International Finance, have an annual interest rate of 6.875%, the London-based company, which operates…
UK-listed Cable & Wireless Communications (LSE: CWC) has priced US$750m of senior notes due 2022.
The notes, to be issued by finance subsidiary Sable International Finance, have an annual interest rate of 6.875%, the London-based company, which operates in the Caribbean and Latin America, said in a statement.
The unsecured notes, guaranteed by CWC and certain subsidiaries, are expected to be issued on 5 August.
Net proceeds will be used primarily to repay a US$390m senior secured two-year term facility and a US$300m senior unsecured two-year term facility. These facilities were used to finance part of the consideration for its US$1.85bn acquisition of Caribbean cableco Columbus International. Remaining proceeds will be used for general corporate purposes.
CWC completed its purchase of Columbus in March, however last month watchdog Caribbean Community and Common Market (Caricom) said it planned to carry out an investigation of the deal as its preliminary review had shown one was warranted. The deal has already been cleared by the Trinidad & Tobago telecoms watchdog and Barbados’ Fair Trading Commission.
CWC CEO Phil Bentley has said the companies believe the acquisition enables greater focus on the Caribbean, Andean and Latin American markets, providing new opportunities in Colombia, Guatemala, Costa Rica, Honduras, El Salvador, Dominican Republic, Puerto Rico and Peru.
However, opponents to the merger have voiced concerns that it will lead to reduced competition and increased prices for consumers.
