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Digicel Group Limited
Closes US$ 1.4 Billion Funding Round |
Press Release
Largest Bond Offering Ever in the Caribbean Five Times
Over-Subscribed
 FEBRUARY
27, 2007: Digicel Group Limited, today
announced it has raised US$1.4 billion in capital through a
corporate bond offering to acquire 100% ownership of Digicel,
one of the fastest growing telecommunications companies in
the world, by its founder and Chairman Denis O’Brien. The
transaction - representing the largest bond offering in the
Caribbean – was five times over-subscribed
Led by investment banks Citigroup and J.P. Morgan Chase the
transaction also involved Lehman Brothers, Credit Suisse,
Davy Stockbrokers and Goodbody Stockbrokers in Ireland. The
US$1.4 billion bond financing which was priced at a coupon
of 8.875% cash pay and 9.125% PIK toggle, involved orders
from approximately 300 accounts across the international
financial community including the United States, Europe, the
Caribbean and Asia.
Today Digicel Chairman Denis O’Brien said he was delighted
that the funding was such a resounding success. “The
response to our offering reflects the confidence in the
prospects for future growth and development of Digicel under
the direction of a dynamic management team and a dedicated
workforce.”
“We believe that the growth prospects in our 22 markets
including Guyana, El Salvador, Haiti and Trinidad & Tobago
will enable Digicel Group to achieve the growth consistency
which has been evident since we started operations in
Jamaica less than six years ago” added Mr. O’Brien.
Digicel recorded annualized revenues of US$948 million for
the six month period ended September 2006 and has a total
customer base of more than 4 million.
More
"This transaction is the largest bond offering ever
undertaken in the Caribbean, and we believe the largest High
Yield from the Latin & Caribbean region” said Ken McGrath,
Managing Director, Citigroup. “It is also the first
innovative Toggle note ever done in the emerging markets. We
believe that the success of the offering was a result of the
Digicel’s growth prospects and most particularly to the
credibility of the management team to continue to grow the
business as the leading Caribbean wireless operator.
Citigroup is proud to have played a role in its success."
James Seagrave, Managing Director of JP Morgan remarked:
"This transaction is remarkable in many respects. Digicel's
brand is increasingly ubiquitous across the Caribbean, as
the Company has continued to expand its footprint and
materially increase the number of mobile users across the
region.
“Digicel’s growth is testament to both its strategy of
providing a high quality network and unique service
experience to its customers as well as to the strength and
track record of the management team. We congratulate all at
the Company who have been involved in Digicel's success so
far and look forward to tracking future milestones" added
James Seagrave.
Digicel Group Limited is a newly created Bermuda
incorporated company formed by Mr. Denis O’Brien, who
previously owned 78% of the shares of Digicel Limited on a
fully diluted basis.
ENDS
“These materials are not an offer for sale of the
[Securities] in the United States. The [Securities] have not
been registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”) and may not be sold in the
United States absent registration or an exemption from
registration under the Securities Act. ”
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