SA mobile operator Cell C to ask for EUR 77mn debt restructuring [IntelliNews - Weekly Reports]
(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) South Africa's third largest mobile operator Cell C will ask bondholders for permission to extend by three years the maturity of EUR 77.4mn worth of senior secured notes due July 2015, Reuters reported, quoting a statement by the company that was not available on its website. The two tranches of euro-dominated notes bear a coupon of 8.625%.
The company also said it would buy back in cash any of the notes for their principal amount from bondholders who prefer to sell than extend the debt. The reason why Cell C is seeking a debt restructuring was not provided.
In May, Cell C said it had budgeted ZAR 2.3bn (USD 219mn) for capital expenditure for 2014, targeted mainly at network enhancements that should bring more stability into the network, increase the coverage and improve the quality of services.
It has been speculated that Cell C should merge with the country's fourth biggest mobile carrier, Telkom Mobile, in order to cut costs by consolidating increasing infrastructure expenses.
As of end-April, Cell C had 16.6 million clients, up from 13.6 million at end-2013, compared to Vodacom's 32.5 million and MTN's 24.9 million.
Cell C is majority owned by Dubai-based Oger Telecom.
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