Published on 9/5/2012 in the Prospect News High Yield Daily.
New Issue: Jamaica's Digicel sells upsized $1.5 billion eight-year notes at par to yield 8¼%
By Paul A. Harris
Portland, Ore., Sept. 5 - Jamaica's Digicel Group Ltd. priced a massively upsized $1.5 billion issue of eight-year senior notes (Caa1//expected B-) at par to yield 8¼% on Wednesday, according to a syndicate source.
The deal was upsized from $700 million.
The yield printed at the tight end of the 8¼% to 8½% yield talk.
Citigroup Global Markets Inc. was the left bookrunner for the quick-to-market issue.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc. and J&E Davy were the joint bookrunners.
The Kingston, Jamaica-based wireless communications company plans to use the proceeds to fund the tender offer for its senior toggle notes and senior notes and redeem any of those notes that remain outstanding after the completion of the tender offer.
| Issuer: | Digicel Group Ltd.
|
| Amount: | $1.5 billion, increased from $700 million
|
| Maturity: | Sept. 30, 2020
|
| Securities: | Senior notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., J&E Davy
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 665 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Sept. 30, 2016, then callable at 104.125, 102.063, par on and after Sept. 30, 2018
|
| Equity clawback: | 35% at 108.25 until Sept. 30, 2015
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 5
|
| Settlement date: | Sept. 19
|
| Ratings: | Moody's: Caa1
|
| Fitch: expected B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8¼% to 8½%
|
| Marketing: | Quick to market
|
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