Digicel raises US$300M to finance growth strategy

The bond financing was raised through investment banks Citigroup and JP Morgan and was priced at a coupon of 9.25 percent with an over subscription of more than ten times, said the company in a statement..

The statement explained that the financing will be utilized to rapidly expand services in TT, to repay mezzanine and shareholder loans, and to fund the recently acquired Cingualr Wireless assets in the Caribbean and Bermuda, pending regulatory approval.

Over the past two weeks, Chairman, Denis O’Brien and Group CEO, Colm Delves made presentations to institutional investors in major international financial markets where wireless network continues to endorse Digicel’s current business success.

Digicel has achieved significant milestones over the past six months in its mission to create a seamless Pan-Caribbean network that has enormous benefits for the entire Caribbean region. This year, so far, the company has increased its reach across the region to 15 countries with acquisition of Curacao Telecom, the awarding of GSM licences in TT and Haiti, and most recently, its agreement to acquire Cingular Wireless’ Caribbean and Bermuda network of operations, which is subject to regulatory approval.

Digicel Chairman, Denis O’Brien stated, "We are greatly encouraged by the response we have seen from this funding initiative. We are now in an even more strategic position to move into our next expansion phase."

"The syndicated funding which Citicorp and JP Morgan led, involves major investing institutions across the globe and it signals the exciting opportunities which exist for Digicel in an increasing number of rapidly developing markets."