Digicel needs $240m a year to pay debt interest

Digicel, the Caribbean mobile phone firm owned by Denis O’Brien, will need to generate about $240 million in cash a year to pay interest on new bank debt, according to financial sources.

17th February, 2007

O’Brien said last week that he would raise a $1.4 billion bond and set up a new company called Digicel Group to buy all the shares in Digicel. After the deal, Digicel Group will have total debt of $2.7 billion, which will attract interest of about 9 per cent a year, or almost $240 million.

O’Brien is using the deal to take full control of Digicel. The new company will buy the 78 per cent of Digicel...

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