Mobile operator Cell C has made a further move to restructure its crippling debt.
The company, which accrued the debt rolling out its second-generation voice network over the past decade, said on Friday it had offered to purchase for cash its outstanding €400m “first priority senior secured notes” due 2012.
Cell C is also soliciting consents from the holders of notes to amend the indenture governing them. Cell C’s tender offer and consent solicitation will expire on 8 October.
The operator says it intends to fund an amount equal to the face amount of notes tendered in the tender offer from the proceeds of a credit facility entered into with China Development Bank. The bank has loaned Cell C an amount of €240m.
The remaining amounts payable in connection with the tender offer and consent solicitation, including accrued interest on the notes and related fees and expenses, will be funded from cash on hand. — Staff reporter, TechCentral