Millicom announces extension of consent solicitations
Millicom International Cellular S.A. (TIGO) has announced an extension of its consent solicitations for holders of its senior notes due 2026, 2028, 2029, 2031, and 2032. The extension is related to proposed amendments to the notes' indentures, which would prevent a Change of Control Triggering Event in connection with Atlas Luxco S.à r.l.'s offer to purchase Millicom's shares. The consent deadline is extended to August 23, 2024, at 5:00 p.m. New York City time.
Millicom is offering a Consent Fee of $2.50 per $1,000 principal amount of notes for valid consents. The amendments require approval from holders of at least a majority of each note series. If approved, the amendments would prevent noteholders from being entitled to a 101% purchase offer, even if the acquisition and a rating decline occur.
Millicom International Cellular S.A. (TIGO) ha annunciato un'estensione delle sue richieste di consenso per i detentori dei suoi note senior in scadenza nel 2026, 2028, 2029, 2031 e 2032. L'estensione è correlata a proposte di modifiche agli atti delle note, che impedirebbero un Evento Scatenante del Cambio di Controllo in relazione all'offerta di acquisto delle azioni di Millicom da parte di Atlas Luxco S.à r.l. La scadenza per il consenso è stata prorogata a 23 agosto 2024, alle 17:00 ora di New York.
Millicom offre una Commissione di Consenso di $2,50 per ogni $1.000 di valore nominale delle note per i consensi validi. Le modifiche richiedono l'approvazione da parte dei detentori di almeno la maggioranza di ciascuna serie di note. Se approvate, tali modifiche impedirebbero ai detentori di note di avere diritto a un'offerta di acquisto del 101%, anche se si verifica un'acquisizione e un calo del rating.
Millicom International Cellular S.A. (TIGO) ha anunciado una extensión de sus solicitudes de consentimiento para los tenedores de sus bonos senior con vencimiento en 2026, 2028, 2029, 2031 y 2032. La extensión está relacionada con las enmiendas propuestas a los contratos de los bonos, que evitarían un Evento Desencadenante de Cambio de Control en relación con la oferta de compra de las acciones de Millicom por parte de Atlas Luxco S.à r.l. La fecha límite para el consentimiento se extiende hasta el 23 de agosto de 2024, a las 5:00 p.m. hora de Nueva York.
Millicom está ofreciendo una Tarifa de Consentimiento de $2.50 por cada $1,000 del monto principal de los bonos por consentimientos válidos. Las enmiendas requieren la aprobación de los tenedores de al menos la mayoría de cada serie de bonos. Si se aprueban, las enmiendas evitarían que los tenedores de bonos tengan derecho a una oferta de compra del 101%, incluso si ocurre la adquisición y una caída en la calificación.
밀리콤 인터내셔널 셀룰러 S.A. (TIGO)는 2026, 2028, 2029, 2031 및 2032년에 만료되는 고급 채권 보유자를 위한 동의 요청의 연장을 발표했습니다. 연장은 밀리콤의 주식을 구매하기 위한 아틀라스 록스코 S.à r.l.의 제안과 관련하여 통제 변화 유발 사건을 방지하는 채권 조건 변경 제안과 관련이 있습니다. 동의 마감일은 2024년 8월 23일 오후 5시 뉴욕 시간으로 연장되었습니다.
밀리콤은 유효한 동의에 대해 $1,000당 $2.50의 동의 수수료를 제공하고 있습니다. 이 수정안은 각 채권 시리즈의 절반 이상의 보유자의 승인을 요구합니다. 승인될 경우, 이러한 수정은 채권 보유자가 인수 및 신용 등급 하락이 발생하더라도 101%의 구매 제안에 대한 권리가 없도록 합니다.
Millicom International Cellular S.A. (TIGO) a annoncé une prolongation de ses demandes de consentement pour les détenteurs de ses obligations senior arrivant à échéance en 2026, 2028, 2029, 2031 et 2032. Cette prolongation est liée à des modifications proposées des contrats des obligations, qui empêcheraient un Événement Déclencheur de Changement de Contrôle en rapport avec l'offre d'achat des actions de Millicom par Atlas Luxco S.à r.l. La date limite de consentement est prolongée jusqu'au 23 août 2024 à 17h00, heure de New York.
Millicom propose des Frais de Consentement de 2,50 USD par 1 000 USD de montant principal des obligations pour les consentements valides. Les modifications exigent l'approbation des détenteurs d'au moins la majorité de chaque série d'obligations. Si elles sont approuvées, ces modifications empêcheraient les détenteurs d'obligations de bénéficier d'une offre d'achat de 101 %, même en cas d'acquisition et de dégradation de la notation.
Millicom International Cellular S.A. (TIGO) hat eine Verlängerung seiner Zustimmungserklärungen für Inhaber seiner vorrangigen Anleihen, die 2026, 2028, 2029, 2031 und 2032 fällig werden, angekündigt. Die Verlängerung steht im Zusammenhang mit vorgeschlagenen Änderungen der Anleihebedingungen, die ein Change of Control Triggering Event im Zusammenhang mit dem Kaufangebot von Atlas Luxco S.à r.l. für die Aktien von Millicom verhindern würden. Die Frist für die Zustimmung wurde auf 23. August 2024 um 17:00 Uhr New Yorker Zeit verlängert.
Millicom bietet eine Zustimmungsgebühr von 2,50 USD pro 1.000 USD Nominalbetrag der Anleihen für gültige Zustimmungen an. Die Änderungen erfordern die Genehmigung von Inhabern von mindestens der Mehrheit jeder Anleiheserie. Bei Genehmigung würden die Änderungen verhindern, dass Anleiheinhaber Anspruch auf ein Kaufangebot von 101% haben, selbst wenn eine Übernahme und eine Ratingabwertung erfolgen.
- Millicom is offering a Consent Fee of $2.50 per $1,000 principal amount of notes for valid consents
- The proposed amendments could potentially save Millicom from having to make a 101% purchase offer to noteholders
- If approved, noteholders would lose their right to a potential 101% purchase offer in case of a Change of Control Triggering Event
- The proposed amendments could be seen as unfavorable to noteholders' interests
Insights
The extension of Millicom's consent solicitations for its senior notes is a strategic move in connection with the proposed acquisition by Atlas Luxco. This action aims to amend the indentures governing the notes, potentially eliminating the requirement for a Change of Control Payment if the acquisition is completed.
The consent fee of
Investors should note that while this move benefits Millicom, it potentially reduces noteholders' rights in the event of a change in control. The extension to August 23 indicates Millicom may not have received sufficient consents yet, highlighting the importance of this amendment to the overall acquisition strategy.
The consent solicitation process raises important legal considerations for both Millicom and its noteholders. By seeking to amend the indentures, Millicom is attempting to modify a key protective covenant for bondholders, which typically requires careful scrutiny.
The requirement for consent from holders of a majority of the outstanding principal amount (excluding Millicom-owned notes) provides some protection against unilateral changes. However, noteholders who do not consent or who miss the deadline will still be bound by the amendments if approved, potentially losing valuable rights without compensation.
From a regulatory perspective, this process appears to be conducted in compliance with SEC rules, including proper disclosure and filing of the Tender Offer Statement. Noteholders should carefully review their rights and the potential impact of these amendments before deciding whether to provide consent.
Millicom announces extension of consent solicitations
Luxembourg, August 15, 2024 – Millicom International Cellular S.A. (“Millicom”) today announced the extension of the period during which 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, as amended by this announcement (the “Consent Solicitation Statement”).
Millicom hereby amends the Consent Solicitation Statement by extending the period during which it will solicit Consents to 5:00 p.m., New York City time, on August 23, 2024, unless further extended (such time and date, with respect to each series of Notes, as may be extended, an “Expiration Date”). Except as specifically provided herein, Millicom does not intend to, nor shall it, modify the Consent Solicitation Statement in any other manner.
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 new deadline for Millicom's (TIGO) consent solicitation?
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