Cell C (Pty) has nnounced an offer to Purchase, a Consent Solicitation and an Asset Sale Offer, in respect of its Dollar-Denominated Senior Subordinated Notes Due 2015. This is contained in a press release by the company.

Cell C (Pty) Limited announced today that it is offering to purchase for cash any and all of its outstanding $270,000,000 11% Senior Subordinated Notes due 2015.  Cell C is also soliciting consents from holders of the Notes to certain proposed amendments to the indenture governing the Notes that would eliminate most of the restrictive covenants and certain events of default in the indenture. In addition, by reason of a recently completed asset sale, Cell C is conducting an asset sale offer for up to $138,016,000 in principal amount of the Notes.  The asset sale offer will expire on June 20, 2011, and the offer to purchase and consent solicitation will expire on June 21, 2011.

 

There are two aspects of this. The company wants to redesign and realign its capital structure. Also, it is very optimistic about its business to do this.  This we hope will enable it to compete and expand in its business.

Of course, realignment of capital structure could be helpful in generating further capital if potential investors like  the resulting structure. Provided this is not a redemption process, it is a positive step.

Cell C is very unique among cellular operators, and it is  shaping the future of cellular communications today, in South Africa. This company’s strategy is built on innovation and it is doing that constantly. In Japan, they call it Kaizen – continuous innovation.

Launched in 2001, Cell C is South Africa’s third cellular operator with just under seven million subscribers. Check out how it described itself, “we are the possibilities provider”. It is about harnessing the power of the web to serve the needs, expectations and perceptions of its customers, very well. And it seems to be doing just that – count the number of firsts in this content from its site.

In 2010 we’re taking the lead in the mobile communications race. We were the first to operate on a dual band network. We were the first to offer cost-effective call options like per second billing. And we’re working on even more firsts right now, like building the first HSPA+ 900 network in South Africa.

 

Cell C looks to the future to bring you the technology of tomorrow today. That’s why, above all, Cell C is a provider of possibilities. Every day, more South Africans turn to us for simple, innovative, value-for-money products, exceptional customer service, and the promise of something even better to come.

 

In the age of the internet the only constant is change. At Cell C we see change as opportunity. So we’re connecting with our customers on Facebook, Twitter and MXit. We want to harness the power of the internet to serve you better.