Digicel Group’s subsidiary Digicel International Finance has received commitments of $1.255 billion for new term loans, upsized from an initial $935 million. The new loans are on improved terms with maturities of between five and seven years.
Citibank acted as left lead arranger for the transaction.
New commitments include a five-year term loan A of $300 million, a seven-year term loan B of $955 million and a three-year revolving credit facility of $100 million.
Proceeds from the loans, net of expenses, will be used to repay existing Digicel facilities of $916 million, redeem $250 million of Digicel 7.00% senior notes due 2020 and for general corporate purposes.
Blake Haider, managing director, Latin Credit Markets at Citi, said: “The market’s very positive response to Digicel’s landmark transaction is extremely encouraging and supportive of the group’s ongoing transformation program, Digicel 2030. This financing represents the largest term loan B transaction issued in the emerging markets, and Citi is proud to be part of it.”
Colm Delves, Digicel Group CEO, commented, “We are very pleased with the level of support we received from a high quality group of lenders and investors in this upsized term loan issue. We have successfully replaced 7% debt with lower coupon debt whilst pushing out our next material debt maturity to September 2020.”
Digicel is a mobile network provider headquartered in Kingston, Jamaica.