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Digicel gives results of Dutch auction offer for 7% convertibles
By Cady Vishniac
Detroit, Dec. 18 – Digicel Group Holdings Ltd. intends to purchase $9,976,036 of its outstanding 7% PIK perpetual convertible notes issued by issued by Digicel Group 0.5 Ltd. at $240 per $1,000 principal as a result of its modified Dutch auction tender offer, according to a company press release.
The company is purchasing all the notes tendered in the offer.
Settlement is expected Dec. 22. No payment will be made on interest for tendered notes, but holders who tendered their notes by the early tender deadline will receive an early tender payment of $30 for each $1,000 face amount.
As previously reported, the company began a tender offer to repurchase up to $10 million of the outstanding notes in a modified Dutch auction procedure on Nov. 19, later extending the early tender deadline to 11:59 p.m. ET on Dec. 17 from 5 p.m. ET on Dec. 3.
There is currently $203,417,888 of the notes outstanding.
The acceptable bid price range was $200 to $240 per $1,000 face amount of notes.
Holders could specify a bid price when they tendered their notes, according to the auction rules. This bid price represented the minimum amount each holder was willing to accept for $1,000 face value of the notes in increments of $2.50 per $1,000. If noteholders elected not to name a bid price, their tenders were treated as if the holders had entered a bid price equal to $200.
The withdrawal deadline was the original early tender deadline, Dec. 3.
Funding for the offer will come from internal resources and a new offering of senior notes.
Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) was the dealer manager for the offer.
Global Bondholder Services Corp. (212 430-3774, 866 470-4700) was the information agent.
Digicel, based in Kingston, Jamaica, is a Caribbean mobile phone network and home entertainment provider.
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