Wednesday 12 December 2018

Digicel makes enhanced offer to bondholders

Digicel owner Denis O’Brien. Photo: Tony Gavin
Digicel owner Denis O’Brien. Photo: Tony Gavin
Donal O'Donovan

Donal O'Donovan

Digicel has amended the terms of a request to its bondholders where the company is seeking 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 in 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.

Bondholders have until December 18 or December 21 to accept the revised terms, depending on which bonds they own.

The changes now proposed follow talks with bondholder representatives and are the first amendements tabled since the original acceptance deadline - on September 14 - was pushed back, reflecting resistance from lenders.

Irish Independent

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