Denis O'Brien's mobile phone group Digicel Group Ltd yesterday announced plans to raise $865 million via senior loan notes with an eight-year maturity. The funds will be used to repay $775 million in existing debt that is due to be repaid in 2018 and carries an interest rate of 10.5 per cent .

The funds will also be used to pay any related fees and expenses, including tender premiums and accrued interest. Digicel will also use the proceeds for “general corporate purposes” that could include “capital expenditures, investments, acquisitions or debt repayment”.

Holders of the existing debt who tender and withdraw their 2018 notes by April 1st will receive $1,059 for ever $1,000 they hold in these bonds. Those who tender after this date but before April 15th will receive €30 less per €1,000 in notes offered.

Digicel has retained Citigroup Global Markets to serve as the dealer manager and solicitation agent for the tender offer.

This is the latest in a long list of large bond offerings by Digicel in the past few years. Mr O’Brien wholly owns the Bermuda-based company, which has operations in 31 markets in the Caribbean, central America and Asia-Pacific.