Digicel Launches $1.4bn Buyout Bond

Digicel Group, the Caribbean telecom, will today, Thursday, look to price a $1.4 billion high-yield offering to yield 9.00%-9.25%. The price talk is viewed by some bankers away from the deal as aggressive, given that the company is 9x levered and rated Caa2 by Moody’s. The notes, due 2015 and callable after year 3, are in two tranches: $1 billion in cash pay bonds and $400 million in cash or PIK notes. The roadshow wrapped up its last stop in Los Angeles Wednesday. The targeted investor base is evenly split between high-yield accounts and emerging markets investors. Citi is on the left with JPMorgan as joint lead. Digicel is based in Jamaica and run by Irish entrepreneur Denis O’Brien.