Business Technology

Thursday 21 September 2017

Digicel plans to raise $925m by selling bonds in private placement

Denis O'Brien
Denis O'Brien
Thomas Molloy

Thomas Molloy

Digicel plans to raise $925m by selling bonds in a private placement.

The money will be used to repay borrowing of $800m due in 2017 and for general corporate purposes, Digicel said in a statement today.

Digicel, which is owned by businessman Denis O’Brien, made the announcement in Bermuda.

The new bonds will yield 6.75pc and are due to be repaid in 2023. The bonds to be replaced yielded 8.25pc and were due in 2017.

Companies and countries all over the world are using cheap credit from central banks which are keeping interest rates at record low levels to repay expensive loans.

Digicel is offering cash to repay all of its outstanding 8.25pc bonds by Monday.

Bondholders will be eligible to receive $1,026.5 for each $1,000 bond, plus any accrued and unpaid interest up to the settlement date. 

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