Luxembourg-headquartered Millicom has issued an US$800m eight-year bond to finance the merger between its Colombian unit, Tigo Colombia, and state-owned telco UNE EPM.
Demand for the bond, which carries a fixed coupon of 6.626%, reached US$2.4bn, the…
Luxembourg-headquartered Millicom has issued an US$800m eight-year bond to finance the merger between its Colombian unit, Tigo Colombia, and state-owned telco UNE EPM.
Demand for the bond, which carries a fixed coupon of 6.626%, reached US$2.4bn, the telco said in a statement. Fitch rated the notes BB+.
Tigo is a wireless operator, while UNE EPM provides cable TV, broadband and ᤙ7;xed-line telephony services.
Millicom hopes to complete the deal, of which the value has not been disclosed, in Q1 2014. Until then, the proceeds from the issuance will sit in an escrow account.
Millicom and UNE’s parent, EPM, agreed on a deal in principle in July. They have since settled on the terms of a transaction, which requires a number of regulatory approvals to complete.
As part of the deal, Millicom will consolidate UNE, which will add US$1.1bn on to the emerging-market specialist’s balance sheet. UNE EPM already has a 25% stake in Tigo Colombia while Millicom owns 50% plus one share.
