Digicel Prices Jumbo Junk Bond

Digicel, a Jamaica-based wireless provider, priced a $1.4 billion bond tighter than the initial price talk of 9.00%-9.25%. The $1 billion in cash pay bonds, priced at par with an 8.75% coupon, while $400 million in cash or PIK notes, also priced at par, with a 9.125% coupon. Predominantly European and US investors specialized in high-yield and emerging markets placed more than $7 billion in orders for the Caa2/CCC+ (Moody’s/Fitch) issue. A banker close to the deal attributed strong interest to the popularity with investors of Digicel’s owner Denis O’Brien, an Irish entrepreneur. Citi led the deal with JPMorgan as co-lead.