Millicom’s Telecel gives early results, amends tender offer for up to $55 million 5 7/8% notes

By Mary-Katherine Stinson

Lexington, Ky., Nov. 21 – Millicom International Cellular SA (Tigo) subsidiary Telefonica Celular del Paraguay SAE (Telecel) announced the early results and the amended terms extending the total consideration and the early tender payment in its tender offer launched on Nov. 4 to purchase for cash up to $55 million of its $550 million outstanding 5 7/8% senior notes due 2027 (ISINs: US87936VAB36, USP90475AB31), according to a press release.

As of the early expiration time of 5 p.m. ET on Nov. 18, which was also the withdrawal deadline, $47,019,000 of notes have been tendered.

The offer has also been amended to extend the total consideration and early tender payment. Holders who tender their notes after the early tender time but at or prior to the expiration time are now eligible to receive the total consideration, including the early tender payment, and will also receive accrued and unpaid interest on such notes from the last interest payment date up to, but not including, the final settlement date. This is in addition to the total consideration.

The company has chosen to exercise its option for an early settlement date, which will be Nov. 21.

As previously reported, the company is offering to pay $927.50 per $1,000 of principal amount tendered, which includes an early tender premium of $30 per $1,000 of principal.

In the original offer, noteholders tendering after the early deadline would have only received $897.50 per $1,000 of principal amount tendered.

The offer expires at 11:59 p.m. ET on Dec. 5 with final payment expected on Dec. 6.

The company stated the purpose of the tender offer is to purchase outstanding debt issued or assumed by Millicom or issued by a subsidiary issuer and to reduce Millicom’s consolidated debt consistent with the company’s previously announced plans.

Citigroup Global Markets Inc. (212 723-6106, 800 558-3745, ny.liabilitymanagement@citi.com) and Scotia Capital (USA) Inc. (212 225-5501, 800 372-3930, LM@scotiabank.com) are the dealer managers for the offer.

D.F. King & Co., Inc. (800 431-9645, 212 269-5550, telefonica@dfking.com) is the information agent and the tender agent.

Tigo Paraguay is a subsidiary of Millicom International Cellular, a voice, data and cable television company based in Luxembourg. Paraguay is its biggest market.

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