Helios Towers Subsidiary Offers $850m Senior Notes at 7.5%
Helios Towers said Thursday its unit HTA Group priced its $850 million offering of 7.500% senior notes due 2029. The notes will pay interest semi-annually in arrears every June 4 and Dec. 4, starting in 2024.
The telecommunications infrastructure group will use the proceeds to repurchase any or all of HTA Group’s $650 million 7.000% senior notes due 2025 in a tender offer, as well as to fully redeem the remaining notes not purchased in the said offer.
A portion of the proceeds will also go to the partial repayment of amounts drawn under its term loan facilities, to fully repay amounts drawn under the Senegal OPco facilities and to pay certain fees, expenses and break costs related to the transaction, along with accrued interest on the existing notes.
Fitch Ratings on Monday affirmed Helios Towers’ B+ long-term issuer default rating, with the outlook revised to positive from stable.
The rating agency said the outlook revision mainly reflects its expectation that the telecommunications infrastructure company’s commitment to cut leverage down toward 3.0x by 2026 will allow it to generate positive free cash flow and boost leverage headroom for managing operating environment risks.
Helios Towers’ ratings are also driven by long-term earnings and cash-flow visibility supported by long-term contracts with mobile network operators, among other factors. The group earlier indicated plans its 7.000% senior notes due 2025 under a tender offer in a regulatory filing on Monday.
The purchase price is set at $1,000 for each $1,000 principal amount of notes validly tendered. The offer period will close on May 30. The transaction, in combination with a new notes offering, aims to support the management of the financial liabilities and debt financing costs of the British telecommunications infrastructure company and its subsidiaries.
Helios Towers Plc engages in the provision of telecommunications towers and related passive infrastructure. The firm provides tower site space to large MNOs and other fixed wireless operators who in turn provide wireless voice and data services to end-user subscribers.
It operates through Tanzania, DRC, Congo Brazzaville, Ghana, South Africa, Senegal, Madagascar, Malari, and Oman. Helios Towers was founded in December 2009 and is headquartered in London, the United Kingdom. #Helios Towers Subsidiary Offers $850m Senior Notes at 7.5%
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