Cell C turns to Blue Label, banks to refinance onerous debt | Fin24
 
In partnership with
Loading...

Cell C turns to Blue Label, banks to refinance onerous debt

Nov 22 2018 12:19
Loni Prinsloo, Bloomberg

Cell C said it’s refinanced R1.4bn of debt on better terms with loans from its biggest shareholder and a consortium of banks as the South African wireless carrier considers a listing in 2020.

South Africa’s third-largest operator is also in talks with vendors including Huawei for an additional facility of R1.4bn to fund capital expenditure, a company representative said by email in response to questions.

Cell C emerged last year from a protracted debt-restructuring rescue plan with Blue Label Telecoms taking a 45% stake. That restructuring reduced Cell C’s debt by two-thirds to less than R6bn, but much of the remainder was still funded at onerous terms with interest rates as high as 17%.

Better terms and new financing will help Cell C improve its results, which have been burdened by high interest-rate payments. In turn, those results have hit Blue Label Telecoms’s shares, which have dropped almost 70% since it took the stake in Cell C.

Cell C, which competes with MTN [JSE:MTN] and Vodacom [JSE:VOD] in South Africa, is planning to sell shares in Johannesburg by the first quarter of 2020 to fund acquisitions, chief executive officer Jose Dos Santos said August 21.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

cell c  |  ict  |  companies
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Trump’s administration has threatened to choke Huawei, hitting some of its biggest component makers. What are you most concerned about??

Previous results · Suggest a vote

Loading...