Millicom receives $335.72 million of tenders at early exchange date

Chicago, Sept. 22 – Millicom International Cellular SA announced the receipt of tenders for $335,716,000 aggregate original principal amount of existing notes under its offer to exchange its $450 million outstanding 6 5/8% senior notes due 2026 (Cusip: 600814AP20) for new 4˝% dollar-denominated notes due 2031, according to a news release.

The company had capped the offer at $335 million; however, Millicom is increasing the cap to accept all of the notes tendered by the early deadline.

The new notes are being issued as a tap of the existing $500 million of notes due 2031.

The company said the purpose of the exchange offer is to refinance the existing notes, which have a call date of Oct. 15, thereby extending the overall maturity profile and reducing the overall cash cost of the company’s debt.

The old notes trade with a “pool factor,” which means the percentage of the original principal amount of the old notes that remains outstanding after the company’s optional redemption of $50 million of old notes in February 2021.

Holders tendering their old notes had to tender the original principal amount of old notes held by them, to which the pool factor, among other adjustments, was applied in calculating the principal amount of new notes they may receive as consideration.

With the pool factor, noteholders tendered $302,144,400 aggregate outstanding principal amount of old notes.

Accordingly, the company expects to issue around $307.5 million principal amount of new notes in exchange for the old notes.

The total exchange ratio is 1.01812, and the exchange ratio is 0.98812.

The total exchange price for each $1,000 principal amount of old notes without giving effect to the pool factor is $1,053.75. This amount is due to holders who tendered by the early deadline of 5 p.m. ET on Sept. 21. It includes an early participation premium of $31.05 of new notes.

The exchange price for each $1,000 principal amount of old notes without giving effect to the pool factor was set at $1,022.70.

The expiration date was scheduled for 11:59 p.m. ET on Oct. 5.

Holders will receive accrued interest in cash.

D.F. King (+44 20 7920 9700, 212 269-5550, 800 431-9646 or millicom@dfkingltd.com) is the information and exchange agent.

Millicom is a Luxembourg-based provider of cable and mobile services to customers in Latin America and Africa.

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