Business Irish

Wednesday 12 December 2018

Digicel amends terms of request to bondholders in €2.59bn swap deal

Bondholders have until December 18 or December 21 to accept revised terms

Digicel boss Denis O'Brien. Photo: Damien Eagers / INM
Digicel boss Denis O'Brien. Photo: Damien Eagers / INM
Donal O'Donovan

Donal O'Donovan

Digicel has amended the terms of a request to its bondholders to swap $3bn (€2.59bn) of outstanding debt for new securities with later maturity dates.

The amended offer moves a $580m portion of the proposed new bonds higher in the Digicel capital structure, as senior secured debt.

In addition the interest paid on a second tranche of bonds that will fall due in 2024 if the offer is accepted will be increased by 2 percentage points to 9.125pc - with the extra interest rolled up in so called payment n kind (pik) notes.

If accepted by lenders the deal will push back maturities on bonds scheduled to fall due in 2020 and 2022 by two years each, providing financial breathing space to the company before it needs to repay the debt.

Depending on their holding bondholders have until December 18 or December 21 to accept the revised terms.

The original early tender deadline for the offer was September 14, but it has been continually pushed back, reflecting resistance from lenders to the terms on offer.

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