Nigeria’s IHS Holding has less leverage, cost of debt after bond sale

By Devika Patel

Knoxville, Tenn., March 15 – IHS Holding Ltd. management reported that its recent bonds sale lowered its cost of debt and the company’s net leverage ratio decreased year-over-year, despite IHS taking on new debt.

“In addition to our October IPO on the New York Stock Exchange that brought new equity capital and public shareholders into the company, IHS executed a successful $1 billion bond offering refinancing in November [2021], which lowered our cost of debt and cost of capital,” chairman and chief executive officer Issam Darwish said on the company’s fourth quarter and year ended Dec. 31, 2021 earnings conference call on Tuesday.

Despite the bonds sale, the company’s net leverage ratio decreased during 2021.

“Given our high levels of cash generation, our consolidated net leverage ratio has decreased versus the prior year,” executive vice president and chief financial officer Adam Walker said on the call.

The company is pleased with its financial position, but management is focused on mitigating impacts from increased volatility due to rising interest rates, higher energy costs and supply-chain disruptions.

“Overall, we remain pleased regarding our financial position and the significant opportunities ahead of us, although we are focused on mitigating the impact of the increased macro-volatility we are seeing in our markets in the form of higher energy prices, upward inflationary pressures, rising interest rates and supply-chain disruptions, not to mention the increased global and political uncertainty from Russia’s invasion of Ukraine, of course,” Darwish said.

On Jan. 4, IHS Holding sold $1 billion of senior notes (B/BB-) in two parts in the international bond markets.

The notes were guaranteed by IHS and issued by IHS Netherlands BV.

The offering consisted of $500 million of 5 5/8% senior notes due 2026 and $500 million of 6Ľ% senior notes due 2028, which each priced at par.

The Rule 144A and Regulation S notes were sold by Citi, Goldman Sachs Bank Europe SE, J.P. Morgan and Standard Chartered Bank. Citi was listed as the global coordinator.

A global investor call and fixed income investors meetings were held in mid-November 2021.

Proceeds were used to redeem in full the company’s $510 million 7 1/8% senior notes due 2025 on Nov. 30, 2021.

IHS is an independent telecommunications tower company based in Lagos.

© 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.