Cell C in R5.4 billion fund raising

Cell C says it has successfully completed the issuance of approximately €240 million (R3.3 billion) of new First Priority Senior Secured Notes.

These new notes will supplement approximately €160 million (R2.2 billion) of First Priority Senior Secured Notes already in issuance, taking the total amount in issuance to €400 million (R5.4 billion), the mobile operator said.

Earlier this month, Standard & Poor’s Ratings Services said that Cell C would need to secure funding within the next month to address a July 1, 2015, unsecured debt maturity of about R2 billion.

The new Euro notes have an identical maturity date, of July 2018, and coupon, of 8.625%, as the existing Euro issuance.

“The original principal amount sought was upsized as a result of strong investor appetite.  Despite this increase, the offering was still oversubscribed, Cell C said.

The successful offering was arranged by MedInvestment Bank, Bankmed and MedSecurities Investment.

The operator said that the proceeds will be utilized to fund it’s capital expenditure and cash requirements in furtherance of its business strategy.

Cell C CEO Jose Dos Santos said: “I am delighted that we have closed such a significant public debt issuance.”

“This is a further sign of the tremendous confidence our bond investors have in our strategy, which has been underpinned by a strong turn around 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.”

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Cell C in R5.4 billion fund raising