Digicel bonds slide to a low level with the market waiting on the details of the sale of communication towers

• Digicel's Obligations Gliding at Low Expense with the Market Waiting on Communication Towers Sale Details

  Independent.ie

  Bonds Digicel fell to new lows yesterday after following down since the rating agency Moody's changed its outlook to negative on telecom operator owned by Denis O Brien [19659005] https://www.independent.ie/business/irish/digicel-bonds-slip-to-fresh-low-with-the-market-on-the-market-market-of-sales-sales communication-towers-37081192.html

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Digicel bonds fell to new lows yesterday after falling since the rating agency Moody's changed its outlook to negative on the property. Denis O & # 39; Brien. telecom operator.

Digicel's obligations to be repaid in 2020, the company's next debt maturity date, dropped to 72.77pc of face value yesterday – implying a return to investors of 24.8pc.

As recently as January the same bonds were trading at more than 100 pc of nominal value. Fluctuations in the bond markets have no impact on Digicel's borrowing costs – the coupon or interest on the bonds remains constant at 8.25pc – but it puts in the potential difficulties of refinancing debt.

Moody's changed his long-term perspective on Digicel Group to negative last week, citing debt levels and uncertainty about timing and amounts to raise sales. badets, although it has not changed the rating itself. Investors plan to reduce its debt by 6.2 billion euros by a turnaround – a multiple of debt-to-earnings – to 5.7 times earnings of 6.7 times, by the end of the year next. Achieving this goal should be the key to refinancing bonds at attractive levels before the 2020 deadline.

A Digicel spokesperson said the company was hiring to reduce her debts and that she had a history of refinancing well in advance. "Digicel remains fully engaged in deleveraging one round to reach its gross deleveraging target by March 2019. The initiatives deployed to date continue to gain ground." Digicel has a very strong track record of refinancing in ahead of bond maturities and does not have a major maturity in less than two years, "he said.

Moody's also cited Digicel's strengths in his latest badessment.

"Digicel's B2 CFR (rating) continues to reflect its geographic and product diversification, strong margins and leading market positions Digicel leads the wireless market in 22 out of 31 markets, "noted Moodys.

Digicel's debt reduction strategy includes the raising of approximately $ 500 million (430 million euros) in badet sales, including the sale-leaseback of 450 laps wireless communication and rising profits.