Wireless operator Digicel has announced a private placement of US$700m of high-yield senior notes due 2020, which was upsized to US$1.5bn according to reports from Reuters Mexico and LatinFinance.
The Jamaica-based telco said it intends to use the net…
Wireless operator Digicel has announced a private placement of US$700m of high-yield senior notes due 2020, which was upsized to US$1.5bn according to reports from Reuters Mexico and LatinFinance.
The Jamaica-based telco said it intends to use the net proceeds from the notes, which carry a coupon of 8.25%, to repurchase two bonds: its 9.125%/9.875% senior toggle notes due 2015 and its 8.875% senior notes, also due 2015.
Toggle notes are a payment-in-kind bond: the issuer can defer an interest payment on the basis that it pays an increased coupon in the future.
The principal amount of the two notes is US$1.415bn and Digicel is offering to purchase any and all of them, with bondholders potentially receiving an early tender premium.
Citigroup has been enlisted by Digicel to handle the bond buyback.
Moody’s rated the new notes Caa1 while Fitch assigned B-.
Digicel is headquarted in Kingston and operates in the Caribbean, Oceania and Central America.
