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Digicel begins Dutch auction tender for $10 million 7% convertibles
By Cady Vishniac
Detroit, Nov. 19 – Digicel Group Holdings Ltd. began a tender offer to purchase for cash up to $10 million of its outstanding 7% PIK perpetual convertible notes in a modified Dutch auction procedure, according to a company press release.
There is currently $203,417,888 of the notes outstanding.
The acceptable bid price range is $200 to $240 per $1,000 face amount of notes.
Holders may specify a bid price when they tender their notes, according to the auction rules. This bid price will represent the minimum amount each holder is willing to accept for $1,000 face value of the notes in increments of $2.50 per $1,000. If noteholders elect not to name a bid price, their tenders will be treated as if the holders had entered a bid price equal to $200.
The early tender deadline is 5 p.m. ET on Dec. 3.
No payment will be made on interest for tendered notes.
Holders who tender their notes by the early tender deadline will receive an early tender payment of $30 for each $1,000 face amount. The company may choose not to accept any tenders following this deadline and the offer will settle on Dec. 6.
The offer will expire at 11:59 p.m. ET Dec. 17.
Settlement is expected on Dec. 20.
Funding for the offer will come from internal resources and a new offering of senior notes.
Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) is the dealer manager for the offer.
Global Bondholder Services Corp. (212 430-3774, 866 470-4700) is the information agent.
The notes were issued by Digicel Group 0.5 Ltd.
Digicel, based in Kingston, Jamaica, is a Caribbean mobile phone network and home entertainment provider.
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