SOURCE: Digicel


December 08, 2009 12:17 ET

Digicel Limited Closes US$500 Million Funding Round

Replaces 2012 Bonds With Cheaper Debt

KINGSTON, JAMAICA--(Marketwire - December 8, 2009) - Digicel Limited today announced that it has completed a US$500 million corporate bond offering of senior notes due 2017. The bonds were sold with a coupon of 8.25% and priced at 98.625 to yield 8.5%.

The proceeds of the offering will be used to repurchase Digicel's outstanding US$450 million 9.25% senior notes due 2012 in a tender offer or through redemption, with any balance retained by the company for general corporate purposes.

The offering was led by Credit Suisse, with Citi and J.P. Morgan acting as joint book-runners on the deal.

Colm Delves, CEO of Digicel, said: "We are very pleased with the success of this refinancing of our 2012 bonds, which shows our continued disciplined approach to our debt management. The transaction enabled us to take advantage of the attractive interest rates available to us. As our recent results show, Digicel is generating substantial cashflow and profits. The lower coupon on our new issue reflects investors' increasing comfort with Digicel's declining risk profile."

"Even in this economic climate, with our approach to delivering best value, best network and best service, we are growing our business and continuing to drive subscriber growth in our newer markets in Panama and Honduras. We are making strong progress building our postpaid customer base and levels of data revenues, and new initiatives on WiMax and targeting Diaspora sales will help deliver continued out-performance."

On 17th November Digicel reported a 10% increase in its half year profit (EBITDA) to US$364 million on revenues of US$857 million. Digicel has grown its subscriber base by 7% in the past 12 months to 7.3 million, and in its most recent quarter to September 30th 2009, it added 98,000 subscribers.

Including Digicel's sister companies Digicel Holdings (Central America) Limited and Digicel Pacific Limited there are now 32 markets served by Digicel and over 10 million customers. The wider group has shown a compound annual growth rate in subscribers of over 40% over the past two years.

Michael Speller of Credit Suisse, the lead book-runner of the offering, said: "Digicel has again demonstrated the level of support it has in the capital markets. The quick execution and attractive rate achieved on this deal is a testament to the demand for this offering and Digicel's strong track record."

This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration.


After eight years of operation, Digicel has 8.8 million customers across its Caribbean and Central American markets and is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state-of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand in the Caribbean and has placed the region at the cutting-edge of wireless communications -- the company is also a recent entrant to the Central American and, through a sister company, Pacific markets.

Digicel is incorporated in Bermuda and now has operations in 26 markets in the Caribbean and Central America comprising of: Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barths.

Digicel Pacific, a sister company of Digicel, has operations in Fiji, Nauru, Papua New Guinea, Samoa, Tonga and Vanuatu.

In total, across its 32 markets, Digicel has 10.3 million subscribers.

Digicel is the lead sponsor of Caribbean and Central American sports teams, including the West Indies Cricket Team and Special Olympics teams throughout the region. Digicel is also title sponsor of the Digicel Caribbean Championships and the Copa de Naciones Digicel, which are the Caribbean and Central American qualifiers to the CONCACAF Gold Cup.

Visit for more information on Digicel.

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