Telecommunications group Digicel has convinced holders of US$1.89 billion of bonds that are due to mature in 2020 to postpone their scheduled repayment by two years, following months of negotiations in a debt restructuring.
According to The Irish Times, Digicel said that represents almost 95 per cent of the group's 2020 bonds.
Digicel, which has US$6.7 billion in debt, in August said that it was looking for bondholders owed US$ 2 billion in October 2020 to swap them for similar notes due in 2022 and carrying the same interest rate, or coupon, of 8.25 per cent.
At the same time, it offered holders of US$1 billion notes due in 2022 to swap their investments for 2024 bonds, carrying the same coupon of 7.125 per cent. The plan was determined by debt ratings agency Moody's to be a "distressed" exchange offer.
The Irish Times reported last month that Digicel had indicated to creditors that it may not meet its debt-burden target for its current financial year to the end of next March, as its planned sale of unwanted assets drags on.
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