By Paul A. Harris
Portland, Ore., March 7 – Digicel priced an upsized $600 million issue of five-year first-lien senior secured notes (B1//B) at par to yield 8¾% on Thursday, according to a syndicate source.
The issue size increased from $550 million.
The yield and price both came on top of final talk. Earlier yield talk was in the 9% area.
Citigroup Global Markets Inc. was the left bookrunner.
Joint bookrunners were J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
The Kingston, Jamaica-based mobile phone network provider plans to use the proceeds to refinance short-term secured debt. The additional proceeds resulting from the $50 million upsizing of the deal will be used to put additional cash on the balance sheet, which will, in turn, be used for general corporate purposes, which may include distributions to Digicel International Finance.
| Issuer: | Digicel Holdings (Bermuda) Ltd. and Digicel International Finance Ltd.
|
| Amount: | $600 million, increased from $550 million
|
| Maturity: | May 25, 2024
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| Spread: | 630 bps
|
| First call: | Treasuries plus 50 bps until May 25, 2021, then callable at 104.375
|
| Equity clawback: | 40% at 108.75 until May 25, 2021
|
| Trade date: | March 7
|
| Settlement date: | March 15
|
| Ratings: | Moody's: B1
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¾% at par, revised from 9% area
|
| Marketing: | Roadshow
|
© 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.
