Jamaica's Digicel increases late tender price for 9¼% notes, to redeem notes not tendered in offer

By Angela McDaniels

Tacoma, Wash., Dec. 8 - Digicel Ltd. increased the purchase price for notes tendered after the consent date in its offer to buy back any and all of its outstanding $450 million of 9¼% senior notes due 2012, according to a company news release.

The price was increased to $1,046.25 per $1,000 principal amount from $1,020.

The purchase price for notes tendered by the consent date, 5 p.m. ET on Dec. 7, remains $1,050 per $1,000 principal amount. This price includes a $30.00 premium.

The company will also pay accrued interest.

Digicel also announced that it is calling all notes that remain outstanding following the tender offer. The redemption price is $1,046.25 per $1,000 principal amount plus accrued interest, and the redemption date is Dec. 22.

The tender offer began Nov. 23 and will expire at 11:59 p.m. ET on Dec. 21.

The company is also soliciting consents to eliminate substantially all of the restrictive covenants and events of default in the indenture governing the notes and shorten the redemption notice period to three business days from 30 days.

Holders who tender their notes must deliver consents and vice versa.

Holders had tendered approximately $437.8 million principal amount, or 97.3%, of the notes as of the consent date.

The consents received are enough to effect the proposed amendments, and Digicel has executed a supplemental indenture.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 538-1862) is the dealer manager and solicitation agent, and D.F. King & Co., Inc. (800 431-9643 or collect 212 269-5550) is the information agent.

Digicel is a wireless communications company based in Kingston, Jamaica.

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