Jamaica's Digicel tenders, seeks consents for $510 million 12% notes

By Susanna Moon

Chicago, Feb. 19 - Digicel Ltd. said it began a cash tender offer and consent solicitation for its outstanding $510 million of 12% senior notes due 2014.

The company is also soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default, according to a press release.

The total purchase price will be $1,068 for each $1,000 principal amount of notes tendered by 5 p.m. ET on March 4, the consent date.

The total payment includes a consent payment of $30.00 per $1,000 of notes.

Holders who tender their notes after the consent date will receive $1,038 per $1,000 principal amount.

The company also will pay accrued interest to but excluding the settlement date.

The tender offer will end at 11:59 p.m. ET on March 18.

Tendered notes may be withdrawn by 5 p.m. ET on March 4.

Holders may not tender their notes without delivering their consents to the proposed amendments, and they may not deliver their consents without tendering their notes.

The proposed amendments require consents from holders of a majority of the outstanding notes, and they will become effective when those notes have been settled.

Notes tendered by the early deadline will be settled on March 5.

The tender offer is conditioned on the company obtaining the needed consents to amend the notes and completion of financing.

Citigroup Global Markets Inc. (attn.: liability management group, 800 558-3745 or collect 212 723-6106) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 389-1500 or collect 212 430-3774) is the information agent.

The issuer is a Kingston, Jamaica, wireless communications company.

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