Cell C today announced that it had signed a Restructuring Agreement with its key lenders, majority bondholders and new equity investors, which will see the company reduce its debt to approximately R6 billion.
The agreement sets out the framework and agrees the key principles by which the debt will be reduced through a combination of fresh equity injections and an exchange of Cell C debt for equity.
Cell C would like to thank its key lenders including Nedbank, Industrial and Commercial Bank of China (ICBC), China Development Bank and the majority of Euro Bondholders for their continued support and participation throughout the recapitalisation process. The written commitments of support from the Development Bank of Southern Africa have also contributed to reaching this milestone.
Cell C is grateful for the on-going support of staff, the board and management of Oger Telecom and Blue Label Telecoms in particular throughout the process.
The restructuring agreement addresses the over-geared balance sheet of Cell C and will unlock further improved and exciting performance.
Cell C customers can look forward to more innovation, value and exciting new products and services, which will be announced in the coming weeks. The company will continue its aggressive rollout of new network technologies, including LTE-Advanced (4G) to ensure customers enjoy a quality experience with enhanced capacity and speed.
The company envisages the financial close of the transaction by no later than 30 June 2017. The completion of the transaction is subject to the execution of detailed formal agreements and the obtaining of all requisite regulatory approvals.
Detailed information about the new capital structure and transaction will be provided to media at a briefing in the coming weeks.