Millicom International offers to exchange up to $335 million 6 5/8% notes

By Wendy Van Sickle

Columbus, Ohio, Sept. 8 – Millicom International Cellular SA is offering to exchange up to $335 million of its $450 million of outstanding 6 5/8% senior notes due 2026 (Cusip: 600814AP20) for new 4˝% dollar-denominated notes due 2031, according to a news release.

The new notes will be issued as a tap of the existing $500 million of notes due 2031.

The company said the purpose of the exchange offer is to refinance the existing notes, which have a call date of Oct. 15, thereby extending the overall maturity profile and reducing the overall cash cost of the company’s debt.

The old notes trade with a “pool factor,” which means the percentage of the original principal amount of the old notes that remains outstanding after the company’s optional redemption of $50 million of old notes in February 2021.

Holders wishing to tender their old notes must tender the original principal amount of old notes held by them, to which the pool factor, among other adjustments, will be applied in calculating the principal amount of new notes they may receive as consideration.

The total exchange ratio will be 1.01812, and the exchange ratio will be 0.98812.

The total exchange price for each $1,000 principal amount of old notes without giving effect to the pool factor will be $1,053.75. This amount will be due to holders who tender by the early deadline of 5 p.m. ET on Sept. 21. It includes an early participation premium of $31.05 of new notes.

The exchange price for each $1,000 principal amount of old notes without giving effect to the pool factor will be $1,022.70. This amount will be due to holders who tender after the early date but before the offer expires at 11:59 p.m. ET on Oct. 5.

Holders will receive accrued interest in cash.

D.F. King (+44 20 7920 9700, 212 269-5550, 800 431-9646 or millicom@dfkingltd.com)is the information and exchange agent.

Millicom is a Luxembourg-based provider of cable and mobile services to customers in Latin America and Africa.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.