Third mobile operator Cell C has put in an offer for the cash purchase of its outstanding EUR400 million first priority senior secured notes, due in 2012.
This comes as Cell C 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 mobile operator is also soliciting consent from the holders of notes to amend the indenture governing the notes. Cell C's tender offer and consent solicitation will expire on 8 October.
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, notes the company.
Cell C adds that it would consider the possibility of redeeming the 11% of senior subordinated notes, due in 2015, following the consummation of the tender offer and consent solicitation. However, the company says the timing of any such redemption has yet to be determined.
This announcement is not an offer to purchase any notes or a solicitation of an offer to sell any notes, states Cell C.
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