SOURCE: Digicel


December 07, 2010 11:44 ET

Digicel Limited Closes $300M Bond Issue

Deal Priced to Yield 7.54%

KINGSTON, JAMAICA--(Marketwire - December 7, 2010) - Digicel Limited ("DL") today announced it has completed a US$300 million corporate bond offering. The transaction was a reopening of the 8.25% senior notes due 2017 first issued in December 2009.

The bonds were priced at 102.75 to yield 7.54%.

Digicel Limited is a leading emerging markets mobile phone operator providing services in 24 markets in the Caribbean and Central America, with 7.8 million subscribers at September 30, 2010. DL also holds a 44% stake in Digicel Holdings (Central America) Limited which has 1.4 million subscribers in its operations in Honduras and Panama. DL's parent company Digicel Group Limited operates in an additional 6 markets in the South Pacific, bringing Digicel's total subscribers across 32 markets to over 11 million.

The use of proceeds of this offering will be for general corporate purposes, including capital expenditure and debt service.

Colm Delves, Digicel Group Chief Executive, said: "The funds raised will in part support the planned expansion of our business in Haiti which delivered strong year on year revenue growth for the six months ended September 30, 2010."

He added: "I am very pleased with the positive response to this transaction, which was more than two times over-subscribed with participation from over 75 well-established high yield and emerging market accounts."

Credit Suisse, Citi, J.P. Morgan, Deutsche Bank, Barclays Capital and Davy acted as initial purchasers on the bond offering.

ABOUT DIGICEL GROUP LIMITED (parent company of Digicel Limited)

After over nine years of operation, Digicel Group Limited has 11 million customers across its 32 markets in the Caribbean, Central America and the Pacific. The company is renowned for delivering best value, best service and best network.

Digicel is the lead sponsor of Caribbean, Central American and Pacific sports teams, including the Special Olympics teams throughout these regions. Digicel sponsors the West Indies cricket team and is also the title sponsor of the Digicel Caribbean Cup. In the Pacific, Digicel is the proud sponsor of several national rugby teams and also sponsors the Vanuatu cricket team.

Digicel also runs a host of community-based initiatives across its markets and has set up Digicel Foundations in Jamaica, Haiti and Papua New Guinea which focus on educational, cultural and social development programmes.

In 2004, Digicel developed Digicel Rising Stars -- an annual talent show to support aspiring young music artists in the Caribbean. The show has spanned the Eastern Caribbean, Haiti, Jamaica and Trinidad & Tobago ranking as one of the top-rated shows.

Digicel is incorporated in Bermuda and its markets comprise: Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, Fiji, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Nauru, Panama, Papua New Guinea, Samoa, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Tonga, Trinidad & Tobago, Turks & Caicos and Vanuatu. Digicel also has coverage in St. Martin and St. Barts in the Caribbean.

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