Bermuda's Digicel starts roadshow for $1.4 billion eight-year notes in two tranches

By Paul A. Harris

St. Louis, Feb. 14 - Digicel Group Ltd. began a roadshow on Wednesday for its $1.4 billion offering of eight-year senior notes in two tranches, according to an informed source.

The Caribbean wireless telecommunications network operator is offering $1 billion of cash-pay notes and $400 million of pay-in-kind toggle notes.

The roadshow is scheduled to conclude on Feb. 22, with the notes expected to price that day or on Feb. 23.

Citigroup and JP Morgan are joint bookrunners for the Rule 144A for life notes. Credit Suisse and Lehman Brothers are co-managers, with other co-managers expected to emerge.

Both tranches of notes will come with three years of call protection.

Proceeds will be used to purchase outstanding shares of Digicel Ltd. for cash and to fund capital expenditures.

The closing of the notes and the share purchase are conditioned upon each other.

Digicel Group Ltd. is a newly created Bermuda incorporated company formed by Denis O'Brien, who currently owns 78% of the shares of Digicel Ltd. on a fully diluted basis.

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