Jamaica-based Digicel Group has launched an US$865m private placement of senior notes to refinance a portion of its debt.
The operator, owned by Irish tycoon Denis O’Brien, will use proceeds from the high-yield offering to buy back its 10.5% senior…
Jamaica-based Digicel Group has launched an US$865m private placement of senior notes to refinance a portion of its debt.
The operator, owned by Irish tycoon Denis O’Brien, will use proceeds from the high-yield offering to buy back its 10.5% senior notes due 2018, which it issued in 2010 to acquire then-sister company Digicel Pacific.
The previous US$725m high-yield offering allowed Digicel to consolidate the stand-alone Pacific business for US$825m almost four years ago.
In a statement it said that any remaining proceeds from the new issue could be used for capital expenditure, investments, acquisitions or debt repayment.
In a ratings report Moody’s rated the notes Caa1 and said there was a possibility that the offering could be upsized to as much as US$1bn.
Digicel did not disclose the banks working on the latest junk offering, although Citigroup is managing the tender offer for the 2018 paper.
Digicel has over 13 million customers across its 31 markets in the Caribbean, Central America and Asia-Pacific.
