Digi Communications, the Dutch-based investment vehicle that owns the Romanian telecom operator RCS & RDS, launched an offer of senior secured bonds worth €800mn on January 27, Profit.ro reported.
The bond tranches are issued with two maturities: 2025 and 2028.
Citigroup Global Markets Europe will coordinate the bond placement which is addressed to qualified institutional investors.
Digi Communications will use the funding to repay most of its debts in advance.
It has already initiated total repayment of the €550mn bonds maturing in 2023, which pay a 5% yearly coupon bonds, including €22.3mn representing the early repayment premium and interest.
In parallel, Digi aims to repay two other loans in advance, namely €88.9mn contracted in 2016 with BRD-Groupe Societe Generale, Citibank, ING Bank and UniCredit Bank as lead managers, and a €73.4mn credit facility contracted in 2018 with Citibank and ING Bank as the lead managers.
The new securities will be guaranteed with senior collateral by the company and its subsidiaries DIGI Tavkozlesi es Szolgaltato and Invitel Tavi Zrt in Hungary and Digi Spain Telecom. The bonds will be listed on the Irish Stock Exchange.