NEW YORK-Wireless operator Millicom International Cellular said it made an offering of about $310 million of secured notes in a mandatory exchange into Services B shares of Swedish operator Tele2 AB. The notes will be issued by MIC’s subsidiary Millicom Telecommunications S.A. and guaranteed by MIC.
The notes will mature in August 2006 and carry a coupon of 5 percent. The exchange premium has been set at 30 percent with a reference price of $34.76.
“Today’s offering of its mandatory exchangeable bond monetizes MIC’s entire holding in Tele2 but provides a 30-percent potential upside. The proceeds will be used to retire high-cost debt, thereby reducing MIC’s funding cost and increasing its free cash flow going forward,” said Marc Beuls, president and chief executive officer of MIC.
