Ratings agency Fitch is suggesting that Digicel Group [94 per cent owned by Irishman Denis O’Brien] consider raising new capital or sell additional assets in order to prepare for its next payout on maturing bonds.
That’s because more than half of its debt maturities are due within four years and its free cash flow is negative.
[Digicel already tried to restructure its debt by extending the maturity dates. But an extension needs to be matched with increased capital or revenue to repay the maturities]
Digicel’s total debt maturities are estimated at US$6.97 billion: with US$1.3 billion in payouts set for April 2022; another US$2.9 billion in 2023; and an additional US$2.56 billion for repayment beyond that.
The telecoms’ total debt is more than 6.7 times its operating earnings.
The Financial Gleaner awaits a response from Digicel on whether it will contemplate selling shares or assets, going forward….