The Name’s Bond, Junk Bond

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Denis O’Brien

Digicel Group was huddling with its creditors on Tuesday after they summarily rejected a plan to swap out US$3 billion of the telecom’s bond for longer term debt, a proposal that would have given the company a two-year reprieve.

It also extended the deadline for accepting the offer by three weeks, from September 28 to October 19.

The company has been liquidating assets as a means of generating cash, but its efforts have been judged inadequate by ratings agencies, leading to credit downgrades. At last estimate, Digcel Group’s leverage was around 6.5 times its adjusted earnings.

Three beeelion dollars.

*touches side of lips with pinky finger*

Digicel extends refinancing offer as bondholders revolt (The Jamaica Gleaner)

Pic: Bloomberg

24 thoughts on “The Name’s Bond, Junk Bond

    1. John

      Denny is well insulated from this.
      He has extracted significant dividends (billions) from Digicell already over the years. He’ll be grand.
      The Craibbean governements might bail him out!

    2. realPolithicks

      They are already working to give the remaining national broadband contract to his company [formerly know as siteserve]

  1. Molly-mopps

    One word well a few more
    National rapid broadband contract with
    Individual who is facing problems and who avoiding taxes when selling telecom business by moving jurisdiction

  2. Joe Small

    Digicel’s debts are in dollars while their earnings are primarily in weaker Caribbean currencies and currency fluctuations have made things worse.
    O’Brien took up to $2 billion in dividends as is his right but it hardly made Digicel’s position any better.

  3. bisted

    …in fairness, ‘johnny’ of this parish has been doing great work charting the decline of Digicel from his New York base…

  4. johnny

    hi bisted,its LA winter is coming:)

    -To lose one CFO may be regarded as a misfortune; to lose both looks like carelessness-

    IPO-both the CEO/CFO have since left.

    “Colm Delves, age 49, Chief Executive Officer and director. Mr. Delves joined us as our Chief Financial Officer in May 2004 and was appointed our Chief Executive Officer in July 2005. Mr. Delves is a Fellow of the Institute of Chartered Accountants in Ireland. Mr. Delves was employed by Hibernia Foods plc from May 1992 until October 2003, serving on the board of directors and as Finance Director. Prior to this he was employed by KPMG, Chartered Accountants, in Dublin from October 1987 until May 1992. He attended Dublin City University and in 1987 received a B.A. in Accounting and Finance. He is also a director of DHCAL and DPL.”

    Gone.

    “O’Brien said, “in every business, you need a yin and a yang. I am not sure if I am the yin or the yang, but we have an excellent relationship that we started to read each other’s mind, knowing exactly what was on each other’s mind.”

    and perhaps his emails :)

    http://www.loopjamaica.com/content/photos-digicel-bids-farewell-colm-delves

    “Lawrence Hickey, age 43, joined Digicel in December 2002 as Financial Controller for the Jamaica operation before being appointed to the role of Finance Director (Jamaica) in August 2003. Mr. Hickey was formally appointed to the role of our Chief Financial Officer effective March 1, 2006. Mr. Hickey qualified as a Chartered Accountant with KPMG in 1994 and post qualification, he joined Grafton Group Plc, an Irish-based publicly quoted company where he held the position of Group Management Accountant. Prior to joining Digicel, Mr. Hickey was the Finance Manager with Esat Telecom in Ireland, where he was responsible for all financial management and financial reporting requirements of Esat Telecom and played a key role in the consolidation of the company’s business and consumer divisions.”

    Gone-another one bites the dust…

    “Kingston, Jamaica – Wednesday, 23rd August 2017. Digicel today announced the appointment of Ray Leclercq as its Group Chief Financial Officer effective 1st September. Ray succeeds long-time Digicel executive, Lawrence Hickey, who informed the Board of Directors late last year of his decision to depart the Group by December 2017. Lawrence is leaving Digicel in order to spend more time with his family”

    Ray quit in August-and another one…..

    Since then deputy group CFO Jaswir Singh has been acting CFO on a interim basis.

    No CFO has created extraordinary pressure on the acting, temporary CFO with Digital in a fight for its very survival,Dennis’s failure to hire and retain a CFO at Digicel is having a significant inmpact and has rattled investors.

  5. Dhaughton99

    Eamon had a great interview with Justine McCartney on ‘The Stand’ Podcast yesterday in relation to the broadband contract.

  6. Brother Barnabas

    i know it’s not the most offensive thing about him but he really needs to close one more shirt button

  7. johnny

    Few bits and pieces-more like housekeeping,these will be referenced.
    -these are just the bond swap offers or announcements.

    KINGSTON, Jamaica, September 24
    https://www.prnewswire.com/news-releases/digicel-group-limited-extends-early-tender-date-for-exchange-offers-and-consent-solicitations-818712391.html

    KINGSTON, Jamaica, September 7, 2018
    https://www.prnewswire.com/news-releases/digicel-group-limited-extends-early-tender-date-for-exchange-offers-and-consent-solicitations-863152173.html

    KINGSTON, Jamaica, August 31
    https://www.prnewswire.com/news-releases/digicel-group-limited-announces-exchange-offers-and-consent-solicitations-880692952.html

    I put up few posts under “For Liam” as a kinda ‘joke’ on Dennis O’Brien and Les Buckley,who are listed as sitting with John Delaney and his finance Emma English at Table 21.
    Very odd no journalists or hacks present at this benefit, Chatam House Rules now was it lads !

      1. johnny

        thanks Millie-its a bit of fun and I’ve gotten tremendous enjoyment from Broadsheet,least I can do is put up a few bits pieces on Ireland’s richest man that I come across!

  8. Blo Jo Brexit

    If ever there was an Irish businessman who needed to do a Ben Dunne pivot and open a chain of cheap gyms it’s Denis O’Brien. Either that or run for President.

    1. johnny

      -this sale excluded the south pacific towers which are expected to generate 55 million by the end December,which explains the shortfall.

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