Millicom announces consent solicitations to amend its outstanding senior notes
Millicom International Cellular S.A. (TIGO) has announced consent solicitations to amend its outstanding senior notes. The company is seeking consent from holders of its 6.625% Senior Notes due 2026, 5.125% Senior Notes due 2028, 6.250% Senior Notes due 2029, 4.500% Senior Notes due 2031, and 7.375% Senior Notes due 2032. The proposed amendments are related to Atlas Luxco S.à r.l.'s offer to purchase all of Millicom's outstanding common shares.
The amendments aim to prevent a Change of Control Triggering Event that would require Millicom to make a purchase offer at 101% of the principal amount plus accrued interest. Millicom will pay a $2.50 per $1,000 principal amount consent fee to noteholders who approve the amendments by August 14, 2024. The changes will be effective if a majority of noteholders consent for each series.
Millicom International Cellular S.A. (TIGO) ha annunciato delle richieste di consenso per modificare le sue obbligazioni senior in circolazione. L'azienda sta cercando il consenso da parte dei detentori dei propri 6,625% Senior Notes in scadenza nel 2026, 5,125% Senior Notes in scadenza nel 2028, 6,250% Senior Notes in scadenza nel 2029, 4,500% Senior Notes in scadenza nel 2031 e 7,375% Senior Notes in scadenza nel 2032. Le modifiche proposte riguardano l'offerta di acquisto di tutte le azioni ordinarie in circolazione di Millicom da parte di Atlas Luxco S.à r.l.
Le modifiche mirano a prevenire un Evento di Cambio di Controllo che costringerebbe Millicom a presentare un'offerta di acquisto al 101% dell'importo principale più gli interessi maturati. Millicom pagherà una commissione di consenso di $2,50 per ogni $1.000 di importo principale agli obbligazionisti che approveranno le modifiche entro il 14 agosto 2024. Le modifiche entreranno in vigore se la maggioranza degli obbligazionisti darà il consenso per ciascuna serie.
Millicom International Cellular S.A. (TIGO) ha anunciado solicitudes de consentimiento para enmendar sus notas senior en circulación. La compañía está buscando el consentimiento de los tenedores de sus Notas Senior al 6.625% con vencimiento en 2026, Notas Senior al 5.125% con vencimiento en 2028, Notas Senior al 6.250% con vencimiento en 2029, Notas Senior al 4.500% con vencimiento en 2031 y Notas Senior al 7.375% con vencimiento en 2032. Las modificaciones propuestas están relacionadas con la oferta de Atlas Luxco S.à r.l. para comprar todas las acciones comunes en circulación de Millicom.
Las enmiendas tienen como objetivo prevenir un Evento de Cambio de Control que obligaría a Millicom a hacer una oferta de compra al 101% del monto principal más los intereses acumulados. Millicom pagará una tarifa de consentimiento de $2.50 por cada $1,000 de monto principal a los tenedores de notas que aprueben las enmiendas antes del 14 de agosto de 2024. Los cambios serán efectivos si la mayoría de los tenedores de notas consienten para cada serie.
밀리콤 인터내셔널 셀룰러 S.A. (TIGO)는 미결제 선순위 채권을 수정하기 위해 동의 요청을 발표했습니다. 회사는 2026년 만기 6.625% 선순위 채권, 2028년 만기 5.125% 선순위 채권, 2029년 만기 6.250% 선순위 채권, 2031년 만기 4.500% 선순위 채권, 2032년 만기 7.375% 선순위 채권의 보유자로부터 동의를 구하고 있습니다. 제안된 수정 사항은 밀리콤의 모든 보통주를 구매하겠다는 Atlas Luxco S.à r.l.의 제안과 관련이 있습니다.
수정의 목적은 밀리콤이 101%의 원금 및 누적 이자를 지급하는 구매 제안을 요구하는 지배구조 변경 사건을 방지하는 것입니다. 밀리콤은 2024년 8월 14일까지 수정 사항에 동의하는 채권자에게 원금 1,000달러당 $2.50의 동의 수수료를 지급합니다. 각 시리즈에 대해 채권자의 과반수 동의가 있을 경우, 변경 사항은 효력을 발생하게 됩니다.
Millicom International Cellular S.A. (TIGO) a annoncé des demandes de consentement pour modifier ses titres senior en circulation. La société cherche à obtenir le consentement des titulaires de ses Notes Senior de 6,625% échues en 2026, Notes Senior de 5,125% échues en 2028, Notes Senior de 6,250% échues en 2029, Notes Senior de 4,500% échues en 2031 et Notes Senior de 7,375% échues en 2032. Les modifications proposées sont liées à l'offre d'Atlas Luxco S.à r.l. d'acheter toutes les actions ordinaires en circulation de Millicom.
Ces modifications visent à éviter un Événement de Changement de Contrôle qui obligerait Millicom à faire une offre d'achat à 101% du montant principal plus les intérêts accumulés. Millicom versera des frais de consentement de 2,50 $ par tranche de 1 000 $ de montant principal aux détenteurs de notes qui approuveront les modifications d'ici le 14 août 2024. Les changements entreront en vigueur si la majorité des détenteurs de notes consentent pour chaque série.
Millicom International Cellular S.A. (TIGO) hat Einwilligungsanfragen zur Änderung seiner ausstehenden Senior Notes angekündigt. Das Unternehmen sucht die Einwilligung der Inhaber seiner 6,625% Senior Notes mit Fälligkeit 2026, 5,125% Senior Notes mit Fälligkeit 2028, 6,250% Senior Notes mit Fälligkeit 2029, 4,500% Senior Notes mit Fälligkeit 2031 und 7,375% Senior Notes mit Fälligkeit 2032. Die vorgeschlagenen Änderungen stehen im Zusammenhang mit dem Angebot von Atlas Luxco S.à r.l., alle ausstehenden Stammaktien von Millicom zu kaufen.
Die Änderungen zielen darauf ab, ein Kontrollwechsel-Ereignis zu verhindern, das Millicom dazu verpflichten würde, ein Kaufangebot in Höhe von 101% des Nennbetrags zuzüglich aufgelaufener Zinsen abzugeben. Millicom wird eine Einwilligungsgebühr von $2,50 pro $1.000 Nennbetrag an die Anleihegläubiger zahlen, die den Änderungen bis zum 14. August 2024 zustimmen. Die Änderungen treten in Kraft, wenn die Mehrheit der Anleihegläubiger für jede Serie zustimmt.
- Millicom is proactively managing its debt obligations in relation to the potential acquisition
- The company is offering a consent fee of $2.50 per $1,000 principal amount to noteholders who approve the amendments
- If approved, the amendments would remove noteholders' right to a Change of Control Payment in case of acquisition
- The proposed changes could potentially reduce noteholder protections in the event of a change in company ownership
Insights
Millicom's consent solicitation for its outstanding senior notes is a strategic move related to its potential acquisition by Atlas Luxco. The key points are:
- The proposed amendments aim to prevent a Change of Control Triggering Event, which would require Millicom to offer to repurchase the notes at
101% of face value. - This could save Millicom significant cash outflows if the acquisition proceeds and there's a rating decline.
- Noteholders are being offered a consent fee of
$2.50 per$1,000 principal, which is relatively low compared to potential savings for Millicom. - The success of this solicitation could smooth the path for the acquisition, potentially benefiting equity holders but at the expense of bondholders' change of control protection.
This move suggests Millicom is preparing for a significant corporate change, balancing financial flexibility with stakeholder interests.
The consent solicitation raises several legal considerations:
- By amending the indentures, Millicom is altering a key protective covenant for bondholders, which could face scrutiny.
- The majority consent threshold (excluding Millicom-owned notes) ensures some level of bondholder democracy, but minority holders could be disadvantaged.
- The separate solicitations for each note series provide some protection, as each class can decide independently.
- The disclosure and process appear to follow standard practices, potentially mitigating legal risks.
While legally sound, this move may impact the relationship between Millicom and its creditors, potentially affecting future debt issuances or terms.
This consent solicitation offers insights into market dynamics:
- It signals strong M&A activity in the telecom sector, with private equity showing interest in public companies.
- The move suggests a shift in power from bondholders to equity holders in the current market environment.
- The relatively low consent fee of
$2.50 per$1,000 indicates Millicom's confidence in obtaining consent, possibly due to current market conditions favoring issuers. - This trend could lead to repricing of change of control provisions in the bond market, potentially affecting future issuances.
Investors should monitor similar actions in other companies, as this could indicate a broader trend in corporate finance strategies, especially in sectors undergoing consolidation.
Millicom announces consent solicitations to amend its outstanding senior notes
Luxembourg, August 5, 2024 – Millicom International Cellular S.A. (“Millicom”) today announced that it will solicit consents (each, a “Consent”) from the holders of record on August 2, 2024 of its
The consent solicitations for each series of Notes (collectively, the “Consent Solicitations” and, with respect to each series, a “Consent Solicitation”) are being made solely on the terms and subject to the conditions set forth in the consent solicitation statement dated August 5, 2024 (the “Consent Solicitation Statement”).
Atlas Luxco S.à r.l., a Luxembourg limited liability company (société à responsibilité limitée) (the “Purchaser”) has offered to purchase, through separate but concurrent offers in Sweden and the United States, all of the issued and outstanding common shares (including common shares represented by Swedish depositary receipts) (the “Shares”) of Millicom pursuant to the Tender Offer Statement and Rule 13e-3 Transaction Statement on Schedule TO filed by Atlas Luxco S.à r.l. and other members of the purchaser group with the U.S. Securities and Exchange Commission on July 1, 2024 (the “Offers”). The Proposed Amendments are being sought in connection with the proposed acquisition by the Purchaser in the Offers of that number of Shares as a result of which the Purchaser would become the beneficial owner, directly or indirectly, of more than
The consummation of the Acquisition would constitute a “Change of Control,” as defined in the Indentures. Were a “Rating Decline” (as defined in the Indentures) also to occur, then the Change of Control and Rating Decline would constitute a “Change of Control Triggering Event” and require Millicom to make an offer, in the manner contemplated by the applicable Indenture, to each holder of the Notes to purchase all or any part of such holder’s Notes at a purchase price equal to
The Proposed Amendments, if they become effective, would amend the Indentures such that the consummation of the Acquisition would not constitute a Change of Control, and that, as a result, a Change of Control Triggering Event would not occur even if the Acquisition were to be consummated and there were to be a Rating Decline, and holders of the Notes would therefore not be entitled to receive any Change of Control Payment in connection with the consummation of the Acquisition.
Approving the Proposed Amendments in respect of an Indenture requires Consents from holders of at least a majority in aggregate outstanding principal amount of the series of Notes governed by such Indenture, excluding any Notes owned by Millicom or its affiliates (the “Requisite Consents”). Each Consent Solicitation is a separate Consent Solicitation to the Proposed Amendments with respect to the applicable Indenture. If the Requisite Consents are received and not validly revoked in respect of one series of Notes, then the Indenture that governs that series of Notes will be amended by the execution of a Supplemental Indenture setting forth the Proposed Amendments.
Millicom will pay a cash payment equal to
Holders of a series of Notes who do not deliver a Consent prior to the applicable Expiration Date or who validly revoke their Consent will not receive the Consent Fee, even though the Proposed Amendments, if they become effective, will bind all holders of such series of Notes and any subsequent holders.
Millicom reserves the right to modify or terminate the terms of the Consent Solicitations at any time. This press release will also be posted on the website of the Luxembourg Stock Exchange.
The information and tabulation agent for the Consent Solicitations is D.F. King. Any questions or requests for assistance may be directed to D.F. King, at +1 212-269-5550 (Banks and Brokers) or +1 888-288-0951 (All Others - US toll free) or by e-mail to micc@dfking.com.
Millicom has retained BNP Paribas Securities Corp. and J.P. Morgan Securities LLC to act as solicitation agents in connection with the Consent Solicitations. Questions regarding the Consent Solicitations may be directed to BNP Paribas Securities Corp. at +1 (212) 841-3059 or by email to dl.us.liability.management@us.bnpparibas.com or to J.P. Morgan Securities LLC at +1 (212) 834-7279.
This announcement does not constitute an offer to sell or issue, or the solicitation of an offer to buy or subscribe for, securities (including the Notes) in any jurisdiction.
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For further information, please contact
| Press: Sofía Corral, Director Corporate Communications press@millicom.com | Investors: Michel Morin, VP Investor Relations investors@millicom.com |
About Millicom
Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and products, including TIGO Money for mobile financial services, TIGO Sports for local entertainment, TIGO ONEtv for pay TV, high-speed data, voice, and business-to-business solutions such as cloud and security. As of June 30, 2024, Millicom, including its Honduras Joint Venture, employed approximately 15,000 people, and provided mobile and fiber-cable services through its digital highways to more than 45 million customers, with a fiber-cable footprint of about 14 million homes passed. Founded in 1990, Millicom International Cellular S.A. is headquartered in Luxembourg.
FAQ
What is the purpose of Millicom's consent solicitations for its senior notes?
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What is the consent fee offered by Millicom for the senior notes amendments?
Which senior notes are affected by Millicom's consent solicitations?
