Denis O'Brien, chairman and founder. - File

Digicel Group Limited, newly incorporated in Bermuda, said it has successfully raised US$1.4 billion from a corporate bond offer, giving Denis O'Brien the capital he needs to finance full acquisition of the company's shares from minority partners.

O'Brien, the founder and chairman of Digicel Group, who holds 78 per cent of the shares in company, said the bond was oversubscribed.

Boasting a customer base of over four million aggregated throughout 22 operating countries, Digicel Group recorded annualised revenues of US$948 million (approximately J$63 billion) for the six-month period ended September 2006.

The bond priced at a 8.875 per cent for cash payments, and 9.125 per cent 'PIK toggle', was taken up by 300 accounts including investors across the Caribbean, the United States, Europe, and Asia, making it the largest bond offering ever in the Caribbean.

Payment in Kind or PIK toggle debt allows the issuer to switch off payments in periods of difficulty, but when payments resume it would be at the higher toggle rate.

Launched in Jamaica 2001, Digicel has become one of the fastest-growing wireless telecommunications operator in the Caribbean. In 2006, Digicel was incorporated in Bermuda having set up operations in 22 Caribbean, Central and South America, and Samoa markets.

"The response to our offering reflects the confidence in the prospects for future growth and development of Digicel under the direction of a dynamic management team and a dedicated workforce," commented O'Brien in a release on the success of the offering.

"We believe that the growth prospects in our 22 markets including Guyana, El Salvador, Haiti and Trinidad & Tobago will enable Digicel Group to achieve the growth consistency which has been evident since we started operations in Jamaica less than six years ago."

The corporate bond offering was led by investment banks Citigroup and J.P. Morgan Chase with Lehman Brothers, Credit Suisse, Davy Stockbrokers and Goodbody Stockbrokers in Ireland also participating.

business@gleanerjm.com.