Digicel to exchange 99.46% of 6% notes, cancels offer for 6¾% notes

By Wendy Van Sickle

Columbus, Ohio, May 21 – Digicel Ltd. (DL) reported 99.46% of its $1.3 billion outstanding 6% notes due 2021 (Cusips: 25380QAG4, G27649AE5) will be swapped out as a result of an exchange offer and consent solicitation, while a liability management exercise for its $925 million outstanding 6¾% notes due 2023 (Cusips: 25380QAH2, G27649AG0) has been canceled.

Digicel’s exchange offers and solicitations for the two series of notes expired at 11:59 p.m. ET on May 20.

Digicel will accept all $1,293,016,000 principal amount tendered in the exchange offer for the existing 2021 notes.

The notes will be exchanged for $626,250,530 principal amount of additional 8¾% senior secured notes due 2024 co-issued by Digicel Finance Ltd. (DIFL) and Digicel Holdings (Bermuda) Ltd. (Holdings); $317,199,666 principal amount of new 13% unsecured notes due 2025 issued by DIFL and Holdings; and $250,002,707 principal amount of new 8% subordinated notes due 2026 to be issued by DIFL and Holdings, according to a news release issued Thursday.

Meanwhile, the company decided to terminate a concurrent offer to exchange DL’s 6¾% notes due 2023 for new 8% senior unsecured notes due 2027 to be issued by DL as well as a related consent solicitation. Notes tendered under that offer will be returned to their holders.

Settlement of the offer for the 2021 notes is expected to occur on May 22.

Digicel launched the exchange offers and consent solicitations on April 1, along with separate offers for other series of notes issued by subsidiaries.

Epiq Corporate Restructuring, LLC (tabulation@epiqglobal.com, 646 282-2500 for banks and brokers and 866 897-6433 or 646 282-2500 for all others) is the information and tabulation agent for all of the tender offers and consent solicitations.

Citigroup Global Markets Inc. (212 723-6106) is the solicitation agent.

Based in Kingston, Jamaica, Digicel is a telecommunications and entertainment provider with operations in the Caribbean, Central America and Asia Pacific.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.