Caribbean360: Multi-million dollar bond issue puts Digicel on strong footing

Multi-million dollar bond issue puts Digicel on strong footing
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Chris Hoyos on 16/02/2012 09:49:00
 
KINGSTON, Jamaica, Thursday February 16, 2012 – Jamaica-based
telecommunications company Digicel Ltd has primed itself for further
acquisitions through the successful issue of a US$250 million corporate bond
offering.
Colm Delves, Digicel Group Chief Executive, said: "This transaction has again
been extremely well supported by the international financing community, having
attracted over US$2.3 billion in orders from more than 160 different accounts
and we are very pleased to have priced this transaction at 7%.  The funds will
leave us in a strong position to expand our business further as we look into
acquisition opportunities."
Digicel has so far followed a growth strategy that targets emerging markets,
providing mobile phone services in 24 markets in the Caribbean and Central
America. As at September 30, 2011, Digicel was on record as having with 9
million subscribers within those markets. Digicel also holds a 44% stake in
Digicel Holdings (Central America) Limited and its parent company, the Digicel
Group, operates in an additional six markets in the South Pacific. The company
did not disclose what further acquisitions it was gearing up for through the
bond issue.
However, the company did state that the proceeds of the offering would also be
used for other general corporate purposes, including debt servicing.
Citi, J.P. Morgan, Credit Suisse, Barclays Capital and Deutsche Bank acted as
initial purchasers on the bond offering. Click here to receive free news
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