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.