Jamaica-based Digicel knows how to take advantage of a bull
market. Twice over the past year, the global telecoms operator
has turned to dollar bond markets to bring down its cost of
financing. And both times, it came away winning.
Best Corporates: Fast forward
Digicel took advantage of falling funding rates to refinance expensive debt at much cheaper levels
In September, it sold a $1.5 billion eight-year non-call
four bond, on which it offered investors an 8.25% yield. The
Caa1/B- rated transaction traded up a point on the break.
Digicel put the cash towards a buyback of around $1.2 billion
worth of 2015 securities on which it paid coupons of 8.875% to
The formula worked again in the first quarter this year.
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