Largest Bond Offering Ever in the Caribbean Five Times Over-Subscribed
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| Denis O'Brien |
KINGSTON, JAMAICA - 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 OBrien. 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 OBrien 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. OBrien.
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.
"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 Digicels 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.
Digicels 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 OBrien, who previously owned 78% of the shares of Digicel Limited on a fully diluted basis.
