January 27 (SeeNews) - Digi Communications [BSE: DIGI], majority owner of Romanian company RCS&RDS, said on Monday that it has launched an offering of secured notes of up to 800 million euro ($882 million).
The notes, issued in two tranches with maturities in 2025 and 2028, will be offered in denominations of 100,000 euro, the company said in a statement filed with the Bucharest Stock Exchange, BVB.
The company will use most of the proceeds to redeem 550 million euro secured notes. Part of the proceeds will also go to prepay about 89 million euro and 73 million euro outstanding under the respective 2016 and 2018 senior facilities agreements, to pay about 22 million euro of redemption premium and accrued, unpaid interest to note holders and about 11 million euro in fees.
Also on Monday, Global Ratings said that it is rating Digi's proposed notes 'BB-', in line with the issuer credit rating.
RCS&RDS, founded by Romanian businessman Zoltan Teszari, comprises two companies - Romanian Cable Systems (RCS) founded in 1994, and Romanian Data Systems (RDS) founded in 1998. Its parent company, Cable Communication Systems, now Digi Communications N.V., indirectly operates telecommunications groups in Hungary, Spain and Italy through RCS&RDS.
Digi is a component of BVB's blue-chip BET and BET-TR indices.
Shares of Digi traded 1.16% lower at 34.1 lei on the BVB as at 1312CET on Monday.
($=0.9069 euro)