Published on 2/19/2013 in the Prospect News High Yield Daily.
New Issue: Jamaica's Digicel sells upsized $1 billion 6% eight-year notes at par
By Paul A. Harris
Portland, Ore., Feb. 19 - Digicel Ltd. priced an upsized $1 billion issue of eight-year senior notes (B1//B) at par to yield 6% on Tuesday, according to a syndicate source.
The yield printed on top of yield talk.
Citigroup Global Markets was the left bookrunner for the quick-to-market deal, which was upsized from $700 million.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and J&E Davy were the joint bookrunners.
The Kingston, Jamaica-based wireless operator plans to use the proceeds to redeem the company's 12% senior notes due 2014 and for general corporate purposes.
Additional proceeds, resulting from the $300 million upsizing of the deal, will be used for general corporate purposes, which could include capital expenditures, acquisitions, debt repayment or dividends.
Issuer: | Digicel Ltd.
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Amount: | $1 billion, increased from $700 million
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Maturity: | April 15, 2021
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Securities: | Senior notes
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Left bookrunner: | Citigroup Global Markets
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Joint bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., J&E Davy
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Coupon: | 6%
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Price: | Par
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Yield: | 6%
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Spread: | 461 bps
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Call features: | Make-whole call at Treasuries plus 50 bps until April 15, 2016, then callable at 104.5, 103, 101.5, par on and after April 15, 2019
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Equity clawback: | 35% at 106 until April 15, 2016
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Change-of-control put: | 101%
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Trade date: | Feb. 19
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Settlement date: | March 5
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Ratings: | Moody's: B1
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| Fitch: B
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 6% area
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Marketing: | Quick to market
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