Liquid Telecommunications Financing PLC, part of the leading pan-African telecoms group Liquid Telecom, which is majority owned by Strive Masiyiwa’s Econet Global, has successfully arranged its US$700 million bond and term loan financing package today.
The group raised $550 million in the international debt capital markets in its debut bond, in addition to a $150 million term loan. The successful pricing of the bond, which launched on June 21, is a significant milestone for both the group and the wider African telecoms sector, which remains one of the least penetrated fixed and mobile internet connectivity markets in the world.
Commenting on the offering, Nic Rudnick, Liquid Telecom’s Group CEO said: “We are pleased with the strong support and interest Liquid Telecom has received internationally. We launched into a challenging market, and have attracted investors of high quality – many of whom are investing in African high yield bonds for the first time. This is a significant achievement for an African tech company.”
The Regulation S / Rule 144A Senior Secured Notes (the “Notes”), due 2022, will bear interest at a rate of 8.5% per annum and will be guaranteed by Liquid Telecommunications Holdings Limited and certain of its subsidiaries. The Notes are expected to be issued on July 13, 2017, subject to customary closing conditions. The proceeds of the offering, together with the term loan financing package, will be used for the refinancing of Liquid Telecom’s existing debt and general corporate purposes. The Notes have been rated in line with Liquid Telecom’s corporate ratings of Ba3 (stable) by Moody’s, and B+ (stable) by Fitch.
The funding will enable Liquid Telecom to further expand and enhance its pan-African fibre network – the largest of its kind in the region – and support its vision for a more connected Africa. Through organic growth and acquisition, Liquid Telecom has built over 50,000km of fibre connecting 9 countries in the region, and currently serves over 113,000 enterprise, carrier and retail customers.
Relevant stabilisation regulations including FCA/ICMA apply.
Citi, Standard Bank and Standard Chartered Bank acted as joint bookrunners.
