January 30 (SeeNews) - Digi Communications [BSE:DIGI], majority owner of Romanian company RCS&RDS, said on Thursday that it has raised 850 million euro ($935 million) through an offering of senior secured notes, 50 million euro above target.
Digi sold 450 million euro worth of notes due in 2025 and carrying a yearly coupon of 2.50%, plus 400 million euro worth of notes due in 2028 and carrying an annual coupon of 3.25%, it said in a statement filed with the Bucharest Stock Exchange, BVB.
The settlement of the notes is expected to take place on February 5.
The notes are expected to be listed on the official list of the Irish Stock Exchange and trade on its regulated market.
The company will use most of the proceeds of the offering to redeem the entire aggregate principal amount outstanding of 550 million euro secured notes due in 2023 and pay 22.3 million euro of redemption premium and accrued, but unpaid, interest to note holders thereof.
Part of the proceeds will be used to prepay about 89 million euro and 73 million euro outstanding under the respective 2016 and 2018 senior facilities agreements, to pay about 22 million euro of redemption premium and accrued, but unpaid interest to note holders and about 11 million euro in fees.
On Monday, Global Ratings said that it is rating Digi's proposed notes 'BB-', in line with the issuer credit rating.
RCS&RDS, founded by Romanian businessman Zoltan Teszari, comprises two companies - Romanian Cable Systems (RCS) founded in 1994, and Romanian Data Systems (RDS) founded in 1998. Its parent company, Cable Communication Systems, now Digi Communications N.V., indirectly operates telecommunications groups in Hungary, Spain and Italy through RCS&RDS.
Digi is a component of the BVB's blue-chip BET and BET-TR indices.
Shares of Digi traded 0.87% lower at 34 lei on the BVB as at 1025CET on Thursday.
($=0.9089 euro)