Millicom’s Guatemalan unit Tigo (Comcel) has raised US$800m through its ten-year bond.
The US dollar-denominated bond was issued below par at 98.233 and will carry a coupon of 6.875%.
Proceeds are to be used to refinance existing debt and for general…
Millicom’s Guatemalan unit Tigo (Comcel) has raised US$800m through its ten-year bond.
The US dollar-denominated bond was issued below par at 98.233 and will carry a coupon of 6.875%.
Proceeds are to be used to refinance existing debt and for general corporate purposes.
Tigo had been expected to issue US$500m worth of senior unsecured notes, which Moody’s assigned a provisional rating of BB+ earlier this month.
Explaining its rationale for the rating, Fitch noted that Tigo is Guatemala’s largest mobile service provider with an “entrenched market position”.
However, the ratings agency said the operator’s top-line growth will be slow, considering the Guatemalan mobile industry has a penetration rate of more than 100%. Tigo will use proceeds to repay debt which stood at US$425m in Q3 2013 and to pay shareholders.
Earlier in January, Millicom signed a put-and-call agreement with Tigo co-owner Miffin Associates. The agreement gives Millicom an unconditional call option to acquire Miffin’s 45% stake for at least a two-year period.
