Denis O’Brien

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….

Digicel advised to sell assets or add fresh capital (Jamaica Gleaner)


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19 thoughts on “Digisell

    1. Ron

      If Irish people really cared about the 5bn Broadband scam there would be Hong Kong style protests on the streets.

  1. eoin

    This is one of Digicel’s better quality bonds, which has a high ranking in the “capital stack”

    Just look at its performance since the end of June. It’s selling at 52c in the dollar today and providing a 31% yield. How many investments can you think of that give you an annual return of 31%. If it sounds too good to be true….

    So now you know why that €5 billion (yes, it’s commonly being reported as the five billion now) National Broadband Plan needs to be signed with a consortium featuring Denis O’Brien’s Siteserv/Actavo pronto. Pronto, Richard!

      1. eoin

        Thanks Johnny, some intriguing info in there. I wonder if Digicel’s definition of “free cash flow” takes account of and includes proceeds from disposals.

        Either way, in the past 28 days, there has been a 20%+ decline in Digicel’s best bonds. We’re in solid default territory now.

        1. Johnny Green

          It’s Friday morning desperately trying finish up in city get out east catch few waves,not a chance I’m gonna get to it this morning Eoin,wasn’t it Carvil that when asked who he’d like come back as quipped,the bond market,it scares everyone.
          As a aside Epstein was found with neck marks in his cell yesterday unconscious,with dead friends of bill trending all day,have a great weekend….

          1. martco

            lads, do ye forsee this bs {Granahan (Fine [DOB] Gael) McCourt} broadband vendor vehicle will come good in sufficient time to save his bacon?

            Its fascinating stuff but am I wrong in thinking this is all just “Monopoly” paper numbers money really, no? He’s hardly going to have the Sheriff on his doorstep to repossess in practical terms, is he?

          2. Johnny Green

            It’s never really been about the dead presidents with dinny,it’s all about being liked and RESPECT-hit it Aretha:)
            He’s like that rich fat kid at school that everyone hates on and laughs at,who desperately try’s buy friends,but is just naff and cheesy,he’s been a figure of mirth and fun on Wall St for years,but great at paying above market fees:)
            Yeah this is gonna hurt – a lot what little is left of his reputation which he clearly cares too much about,will be forever tarnished by this epic failure.He drained this company of cash and loaded it up with horribly expensive and unsustainable debt,to pay off his called Anglo loans.What a pathetic way run a great business,he crashed a great thriving company with vanity,selfish side projects like the INM fiasco.
            Sorry Martco-answer all over place,on a train,we will do a full postmortem as this deathwatch is almost over.

          3. martco

            no bother keep it coming

            I can always fantasise that Denis ends up like yer man Henry Hill at the end of Goodfellas…an ordinary schmuck living in a bungalow in some housing estate somewhere :) :)

          4. V

            Ah he’ll scape his way out it

            Getting out of INM will prove to be his life boat

            In the meantime
            If he needs to consult a PIP …..

          5. B9Com From No

            Didn’t he take a load of cash out years ago Johnny? It’s not as if he’s short of a few bob

          6. eoin

            I’ve stopped believing the figs that are being reported about Digicel, especially its revenue. I’m NOT saying they’re doing a Datalex (the Dermot Desmond company suspended from the Irish stock exchange for inflating revenue) but with the collapse in local currencies and political/social turmoil in major markets, I don’t believe Digicel revenues are at the $570m a quarter level.

            PwC Jamaica used audit Digicel, though of course Digicel doesn’t publish audited accounts.

          7. Johnny Green

            Hi B9~he took about 1 Billion out Digicel when his almost 1 Billion Anglo loans got called-which meant he was cut off at Anglo and Digi,after this investors in the bonds specifically prohibited any more ‘special dividends’ to DOB.

            ‘Denis O’Brien, the telecoms entrepreneur, is listed as owing Anglo Irish Bank €833.8m on foot of personal and corporate loans just after the bank was nationalised in 2009, making him its then sixth largest borrower.
            Mr O’Brien has over the past three years reduced his borrowings to under €500m using cash generated by his Caribbean and Pacific-based mobile phone empire‘


    1. GiggidyGoo

      I think if FG gift this to McCourt/A tivo, there could be a real problem for elected members of FG. And not just in the polls or elections. It has a high chance of getting personal. This FG crowd can magic billions, and extra billions when it suits their masters, and at the same time no tens of millions to staff the nursing or specialists.
      Homelessness, HSE, TDs gaming the insurance sector. Taoiseach hiding behind snide remarks instead of answers in the dail.
      They need to be very careful.

  2. dav

    Credit to Eoin for pointing this out in the papers comments section.
    Redacted is broke and has been for years

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