Digicel again receives consents to extend grace period for 6¾% notes

By Mary-Katherine Stinson

Lexington, Ky., May 2 – Digicel Ltd. received the required consents from holders of its 6¾% senior notes due March 1, 2023 to effect some amendments to the note indenture that provide for another 15-day grace period before a default in the payment of interest, certain additional amounts, principal or premium related to the notes constitutes an event of default, according to a press release.

The grace period includes the option for a further 15-day extension to the 60-day grace period previously consented to, provided a majority of holders consent.

The latest consents and permitted grace period follow the previously reported 15-day grace period approved March 31.

Approval was also granted for a bridge facility up to $100 million to finance working capital needs and other general corporate purposes of DIFL and its subsidiaries on an interim basis.

Consents were also received to waive any default or events default resulting from Digicel’s entering a scheme of arrangement under section 99 of the Companies Act of 1981 of Bermuda relating to a restructuring support agreement, its Digicel International Finance Ltd. credit facility, or its 8¾% senior secured notes due 2024, the 13% senior cash pay/PIK notes due 2025 or the 8% subordinated notes due 2026 all co-issued by Digicel Intermediate Holdings Ltd. and Digicel International Finance.

Digicel Intermediate and Digicel International Finance also received consents from holders of each of the notes to permit the co-issuers to enter the $100 million bridge facility and waive any defaults or events of default as a result of entering any scheme relating to the credit facility or the notes.

The most recent consent solicitation expired at 5 p.m. ET on April 28, with the consent solicitation for the Digicel International Finance notes expiring at 5 p.m. ET on May 1.

Consents were received for approximately 83% of Digicel’s 6¾% senior notes, 83% of the 8¾% secured notes, 91% of the 13% senior cash pay/PIK notes and 8% subordinated notes.

Deutsche Bank Trust Co. Americas is the trustee for the notes.

As a result of the successful consent solicitation Digicel, Deutsche Bank Trust Co. Americas as trustee and the guarantors entered into the supplemental indenture April 28. Digicel Intermediate and Digicel International Finance and the guarantors entered into the supplemental indenture as of May 1.

Epiq Corporate Restructuring, LLC was the information and tabulation agent.

Digicel, based in Kingston, Jamaica, is a Caribbean mobile phone network and home entertainment provider.

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