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Cell C has successfully completed the issuance of approximately €240-million of new First Priority Senior Secured Notes.

The new notes will supplement approximately €60-million of First Priority Senior Secured Notes already in issuance, taking the total amount in issuance to €400-million.

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.

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

The proceeds will be used to fund Cell C’s capital expenditure and cash requirements in furtherance of its business strategy.

Cell C CEO Jose Dos Santos says: “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.”