LUXEMBOURG - Millicom International Cellular S.A. (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB), a leading telecommunications service provider in Latin America, has announced the initiation of a private offering of Senior Notes due in 2032. The offering aims to refinance existing obligations, including the repayment of the DNB Loans, which are set to mature in 2026.
The company outlined that the proceeds from the notes would primarily be used to address the $200 million in unsecured credit agreements. These agreements include a $100 million credit facility with DNB Sweden AB as the administrative agent and initial lender for Millicom, and another $100 million for Telemóvil El Salvador, a subsidiary of Millicom, with the same lender.
Millicom has indicated that any remaining funds from the offering, after the repayment of the DNB Loans, will be used for general corporate purposes, which may include further debt repayment, redemption, retirement, or repurchase activities.
The telecommunications giant, which provides a suite of digital services including TIGO Money, TIGO Sports, and TIGO ONEtv, employs around 16,500 people and serves more than 45 million customers with a fiber-cable footprint of over 13 million homes.
The offering is based on a press release statement from Millicom International Cellular S.A.
InvestingPro Insights
As Millicom International Cellular S.A. (TIGO) moves forward with its strategic financial restructuring through the initiation of a private offering of Senior Notes, it's important for investors to consider the company's current standing and future potential. InvestingPro data and tips provide key insights into Millicom's performance and prospects:
InvestingPro Data highlights the company's market capitalization, which stands at $3,280 million USD, reflecting the company’s size and market value. Additionally, Millicom's price-to-book ratio for the last twelve months as of Q4 2023 is at 0.93, suggesting that the stock might be reasonably valued with respect to its assets. The company has also shown a quarterly revenue growth of 6.81% in Q1 2023, indicating a positive trajectory in its earnings potential.
InvestingPro Tips suggest that while Millicom has not been profitable over the last twelve months, analysts predict the company will turn profitable this year. This could be an encouraging sign for investors looking for growth potential. However, it's important to note that Millicom's short-term obligations exceed its liquid assets, which could pose liquidity risks.
For investors interested in a deeper dive into Millicom's financial health and future outlook, there are additional InvestingPro Tips available. These include insights into the company's expected net income growth, trading performance relative to its 52-week high, and return over the last month. For example, Millicom has recently been trading near its 52-week high and has seen a strong return over the last month, which could be indicative of positive market sentiment towards the company's actions and future.
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