Cell C has signed a restructuring agreement with its key lenders, majority bondholders and new equity investors, which will see the company reduce its debt to approximately R6-billion.
The agreement sets out the framework and agrees the key principles by which the debt will be reduced through a combination of fresh equity injections and an exchange of Cell C debt for equity.
“Cell C would like to thank its key lenders including Nedbank, Industrial and Commercial Bank of China (ICBC), China Development Bank and the majority of Euro Bondholders for their continued support and participation throughout the recapitalisation process,” reads a statement from the company. “The written commitments of support from the Development Bank of Southern Africa have also contributed to reaching this milestone.”
The restructuring agreement addresses the over-geared balance sheet of Cell C and is expected to unlock performance improvements.
The company will announce new products and services in the coming weeks, and has committed to continuing its aggressive rollout of new network technologies, including LTE-Advanced (4G).
Financial close of the transaction is expected by no later than 30 June 2017. The completion of the transaction is subject to the execution of detailed formal agreements and the obtaining of all requisite regulatory approvals.