Digicel amends offer to bondholders as it seeks to change maturity date

Telecoms company has increased offer to swap debt

Denis O’Brien’s company has $6.7 billion of debt. Photograph:  Dara Mac Dónaill

Denis O’Brien’s company has $6.7 billion of debt. Photograph: Dara Mac Dónaill

 

Digicel has amended its offer to bondholders as it seeks to persudade them to swap notes for debt with a later maturity.

Denis O’Brien’s telecoms company, which has $6.7 billion of debt, said in August that it was looking for investors holding $2 billion of bonds due in 2020 to swap their notes for similar securities that would be due two years later. The group also wants holders of $1 billion of debt that matures in 2022 to exchange their bonds for new 2024 notes.

The new offer will see holders of 2020 debt potentially swap their bonds for senior secured debt, with around $580 million out of the $2 billion available. Digicel is offering a higher ranking for the remaining debt, placing the notes above the bonds that are not being exchanged.

The later dated debt will be given a higher return, with a 2 per centuplift over the original offer.

Digicel extended the deadline for the fifth time in just over two months in November as it continued talks with bondholder representatives on the matter. The extension was for one week to December 7th.