By Reshmi Basu
New York, July 21 - Jamaica's Digicel Ltd. priced an upsized $300 million offering of seven-year senior notes (B3//B) at par to yield 9¼%, according to a market source.
The deal came on top of revised price guidance. Guidance had been lowered to 9¼% from the 9½% area.
The notes, increased from $250 million, will be non-callable for four years. The issue will also carry senior subordinated guarantees.
Proceeds from the sale will be used to repay a shareholder loan, for capital expenditures and to prepay mezzanine debt.
Citigroup and JP Morgan ran the Rule 144A/Regulation S deal.
The company is a wireless operator based in Kingston, Jamaica.
| Issuer: | Digicel Ltd.
|
| Amount: | $300 million
|
| Issue: | Senior notes
|
| Maturity: | Sept. 1, 2012
|
| Coupon: | 9¼%
|
| Issue price: | Par
|
| Yield: | 9¼%
|
| Spread: | 513 basis points more than Treasuries
|
| Call option: | Non-callable for four years
|
| Pricing date: | July 21
|
| Lead managers: | JP Morgan, Citigroup
|
| Ratings: | Moody's: B3
|
| Fitch: B
|
| Revised price guidance: | 9¼%
|
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