Saturday 24 March 2018

Digicel Group complete refinancing deal after receiving commitments for $1.255bn

Businessman Denis O’Brien. Photo: Bloomberg
Businessman Denis O’Brien. Photo: Bloomberg Newsdesk Newsdesk

Digicel Group has completed a refinancing deal after receiving commitments for $1.255bn (€1.16bn) of new term loans – up from an initial $935m (€861m).

The new loans have been agreed on improved terms for the borrower, with maturities of five and seven years. The interest rate ranges from 3.5pc to 3.75pc over Libor, less than initially guided when the deal went out to the wider market last week

The package included a $100m (€92m) revolving credit facility. The over subscribed deal was increased by $300m (€276m) on the back of investor demand. The final deal was more than twice oversubscribed, Digicel said. Approximately 80 investors participated.

The funds will be used to repay $916m (€843m) of term loans and $250m (€230m) of bonds that carry a 7pc interest rate and for general corporate purposes.

The financing was led by Citi.

Read More: Digicel increases debt deal to $1.25bn

“We are very pleased with the level of support we received from a high quality group of lenders and investors in this upsized term loan issue. The transaction is consistent with the group’s strategy of proactively managing our debt maturity profile on improved terms, where practicable.

"We have successfully replaced 7pc debt with lower coupon debt whilst pushing out our next material debt maturity to September 2020.The Group remains focused on de-leveraging over the near and medium term,” Colm Delves, Digicel Group CEO, said.

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