Digicel Trims Debt Expenses

Caribbean telecom Digicel jumped back into the bond market Monday, selling $500m in 2017 NC4 bonds to finance the repurchase of more expensive 2012 debt. The issuer priced at 98.625 with an 8.25% coupon, to yield 8.50%, or UST plus 546bp. The notes Digicel is looking to replace carry a 9.25% coupon. The B1/B minus issue was heard getting about $1bn in demand, with heavy interest from high-yield accounts, as was the case with Digicel’s offerings in March and June. Credit Suisse, Citi and JPMorgan managed the sale. Proceeds will fund the repurchase of any and all of Digicel’s $450m in 9.25% 2012 bonds. It is offering cash payment of $1,050 per $1,000 if tendered by December 7, and $1,020 per $1,000 tendered by the offer’s December 21 expiration date. Credit Suisse is dealer-manager on the tender. The 2012s were sold in 2006. Any balance remaining after the buyback will be used for general corporate purposes. In March, Digicel sold $335m in 12.00% 2014 bonds, and reopened the same issue in June to raise $160m more through Citi and JPMorgan.