Digicel goes after another US$300m of debt financing
Published:Sunday | December 5, 2010 | 12:00 AM
Digicel Limited last Thursday said it would be raising another US$300 million of debt capital through private placement of senior notes.
Debt is Denis O'Brien's preferred means of financing the expansion of his global business.
Credit Suisse, Citi, JP Morgan, Deutsche Bank, and Barclays were the joint bookrunning managers for the sale, according to Reuters.
The notes, which have a tenure of seven years, were priced at 8.25 per cent to yield 7.544 per cent. Interest is payable semi-annually, starting next March. They mature May 2017.
Digicel Limited is incorporated offshore in Bermuda.
"The notes have not been and will not be registered under the US Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements," the company advised in a statement.
Digicel's next target for market growth is likely to be Africa, according to media reports. The company is also building a US$65 million complex in Kingston, due for completion in May 2012, to house its group headquarters.
But Digicel said the new funds raised would be for "general corporate purposes, including debt service and capital expenditure". The transaction is expected to be settled on Tuesday.