Millicom calls its $200 million 4% convertibles

By Susanna Moon

Chicago, Dec. 21 - Millicom International Cellular SA said it would repurchase its $200 million of 4% convertible bonds due 2010.

The company said it would redeem the convertibles on Jan. 21 at par plus accrued interest up to and excluding the redemption date.

As of Dec. 18, the outstanding amount of the bonds was $199 million.

Bondholders may convert the bonds into common shares or Swedish Depositary Receipts until noon ET on Jan. 11.

The conversion price is $34.86 per share. On Dec. 18, Millicom's stock (Nasdaq: MICC) closed at $107.13.

"We are forcing redemption to reduce our corporate debt and, over time, we will increase debt within our operating companies, which will increase balance sheet efficiency and have a positive impact on the consolidated tax position," Marc Beuls, chief executive officer of Millicom, said in a press release.

"Millicom will save some $15.8 million in interest costs by paying back this debt early."

The Luxembourg-based telecommunications company said on Oct. 23 that it benefited from market volatility by buying back $45 million of its 10% senior notes due Dec. 1, 2013.

© 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.