Two units of businessman Denis O’Brien’s Digicel have confirmed plans to sell $600 million (€535 million) of senior secured bonds through a private placement to refinance existing borrowings and give the telecommunications group additional financial flexibility.

Digicel Holdings (Bermuda) Ltd and Digicel International Finance Ltd (DIFL) on Thursday said it was increasing the principal amount reported in a previously announced proposal offering by $50 million.

The unit intends to use the net proceeds from the bond offering to repay funds already drawn down on DIFL’s existing revolving credit facility as well as a so-called term loan A facility.

Digicel last week told bondholders that its cash levels fell by almost two-thirds to $96 million in the three months to end of December. This was mainly the result of investing in working capital during the seasonally busy period before Christmas and a tax payment made following the $90 million sale of telecom towers in the Caribbean in September.