Cell C to restructure EUR160m of debt

12 Aug 2014

Bondholders of South African wireless operator Cell C have unanimously agreed to allow the company to push back the maturity of EUR160 million (USD213.86 million) of debt until 2018, in order to free up cash for network expansion, Reuters reports. In July 2014 Cell C asked bondholders for permission to delay repayment of EUR77.4 million of senior notes due in July 2015 for three years, after reaching a similar agreement with Saudi Arabia-based major shareholder Oger Telecom over EUR82.7 million worth of debt earlier that month. Further, the company offered to buy back debt from any bond holder who does not wish to extend their position. Cell C CEO Jose Dos Santos said the extension would allow Cell C to channel equity and cash generated in the business to increase its capacity to continue to grow the company. The operator reportedly plans to invest ZAR2.3 billion (USD215 million) in network infrastructure in 2014.

South Africa, Cell C