Cell C raises EUR240m in debt to fund expansion

29 Jun 2015

Cell C has raised EUR240 million (USD267 million) in debt to fund its expansion programme, with the new ‘first priority senior secured notes’ to supplement the EUR160 million in similar instruments already in issuance, TechCentral reports. The new notes have the same maturity date as the previous funds (July 2018), with an interest rate of 8.625%. ‘The original principal amount sought was upsized as a result of strong investor appetite … Despite this increase, the offering was still oversubscribed’, the company was cited as saying in a statement, adding: ‘The proceeds will be utilised to fund Cell C’s capital expenditure and cash requirements in furtherance of its business strategy.’ The new offering was arranged by MedInvestment Bank, Bankmed and MedSecurities Investment.

South Africa, Cell C