Digicel Group cancels tender offer for 8¼% notes due 2022, extends exchange offers

By Rebecca Melvin

New York, June 16 – In light of the approval of Digicel Group One Ltd.’s debt refinancing plan by the Bermuda Court on June 8, the company is canceling the tender offer for its 8¼% senior notes due 2022; and to better align with the Digicel Group One plan, Digicel Group Two Ltd. is extending the expiration date of its offers to exchange its 8¼% senior notes due 2022 and 9 1/8% senior cash pay/PIK notes due 2024.

Digicel Group One said all notes that have already been tendered will be returned and that settlement will be aligned with consummation of the debt plan.

Digicel Group Two said it is extending the expiration date for its exchange offer and related consent solicitations to 11:59 p.m. ET on June 23. The offer, dated April 1, is to exchange any and all of its outstanding $937.1 million principal amount of 8¼% notes due 2022 for up to about $300 million new 5% cash pay/3% payment-in-kind notes due 2025 to be issued by Digicel Group 0.5 Ltd., plus up to about $50 million of new 7% PIK perpetual convertible notes, to be issued by Digicel Group 0.5, and to exchange any and all of its outstanding $993 million principal amount of 9 1/8% senior cash pay/PIK notes due 2024 for up to about $100 million of new Digcel Group 0.5 notes and up to about $150 million of Digicel Group 0.5 convertibles.

The April 14 withdrawal deadline was not extended.

The companies had received tenders of $909,569,095 principal amount of existing 2022 notes, representing 97.1% of the notes, and $985,178,129 principal amount of 2024 notes, representing 99.2% of the notes.

The exchange offers are part of a deleveraging process to reduce debt by $1.6 billion to $5.4 billion and which has already been accepted by the overwhelming majority of Digicel noteholders, according to the company’s release.

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.

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

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