Cell C has raised €240m, or about R3,3bn at the current exchange rate, in new debt to fund expansion.
The new “first priority senior secured notes” will supplement €160m in similar instruments already in issuance, the mobile operator said in a statement.
The new euro notes have the same maturity date as the others, namely July 2018, issued at the same interest rate of 8,625%.
“The original principal amount sought was upsized as a result of strong investor appetite,” Cell C said. “Despite this increase, the offering was still oversubscribed.”
The successful offering was arranged by MedInvestment Bank, Bankmed and MedSecurities Investment.
“The proceeds will be utilised to fund Cell C’s capital expenditure and cash requirements in furtherance of its business strategy,” it said.
“I am delighted that we have closed such a significant public debt issuance,” said Cell C CEO Jose Dos Santos in a statement.
“This is a further sign of the tremendous confidence our bond investors have in our strategy, which has been underpinned by a strong turnaround in the company’s performance over the past 18 months. This issuance also reflects the company’s excellent track record of servicing its debt obligations.” — © 2015 NewsCentral Media