Digicel Tender Offers

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Digicel Building

Digicel announces their plans to exchange  the full amount outstanding on both the 8.25% (2020)  and 7.125% (2022) bonds issued.

$2bn of 8.25% 2020 notes are offered to be exchanged for $2bn of new 8.25% 2022 notes;
Issuer: Digicel Group One Limited – 95c if tendered after the early tender date of September 14.

$1bn of 7.125% 2022 notes are offered to be exchanged for $1bn of new 8.25% Cash/PIK 2024 notes (7.125% cash/1.125% PIK);
Issuer:  Digicel Two Limited- 95c if tendered after September 14.

The exchange pushes maturities forward but does not fully address the issue of maturity concentration between bonds of 2020 and 2022. This move is likely to clear the refinancing risk of the ’20s that was of great concern for the relevant markets.

The offer is subject to a 90% acceptance rate for each series of notes with the tender expiration date slated for September 14. The company expects that through improved results this may channel the refinancing of debt maturities in the capital markets.

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