By Paul A. Harris
St. Louis, March 6 - Digicel Ltd. priced a downsized and restructured $300 million issue of 12% senior unsecured notes (B1//existing B) at 89.679 to yield 15% on Friday, according to market sources.
The yield came on top of the 15% yield talk, while the issue price came slightly cheap to the 90.00 area price talk.
While the deal did not appear successful to one market source, nevertheless the new notes will at least trade next to the company's existing bonds, the source conceded.
The deal was downsized from $435 million.
The Jamaican wireless services provider also introduced significant covenant changes.
Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Credit Suisse were joint bookrunners for the Rule 144A for life issue.
Proceeds will be used to acquire an equity interest in the prospective issuer's sister company, Digicel Holdings (Central America) Ltd. (DHCAL), and for general corporate purposes.
DHCAL launched operations in Honduras and Panama in late 2008, according to a market source.
Digicel is based in Kingston, Jamaica.
| Issuer: | Digicel Ltd.
|
| Amount: | $300 million, decreased from $435 million
|
| Maturity: | April 11, 2014
|
| Security description: | Senior unsecured notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Credit Suisse
|
| Coupon: | 12%
|
| Price: | 89.679
|
| Yield: | 15%
|
| First call: | Callable in three years at 112
|
| Trade date: | March 6
|
| Settlement date: | March 11
|
| Ratings: | Moody's: B1
|
| Fitch: B- (existing)
|
| Distribution: | Rule 144A for life
|
| Price talk: | 15% discounted to approximately 90.00
|
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