Digicel has announced a major financial restructuring initiative, launching more than $2 billion in new bond offerings and seeking to refinance existing debt through new credit facilities.

The telecommunications provider revealed it has begun an offering of $1.55 billion in senior secured notes due 2032, to be co-issued by Digicel International Finance Ltd and DIFL US LLC.

In addition, Digicel is issuing $415 million in senior unsecured notes due 2033, co-issued by Digicel MidCo Ltd and DIFL US II LLC.

In tandem, DIFL is pursuing a new $750 million first lien senior secured-term loan and a $200 million revolving credit facility, collectively known as the New DIFL Credit Facilities.

According to the company, proceeds from the offerings, combined with the new term loans and available cash, will be used to repay Digicel’s existing credit facility, redeem outstanding 9 per cent and 10.5 per cent notes due in 2027 and 2028, and cover associated fees and expenses.

The secured notes and credit facilities will be guaranteed by Digicel Intermediate Holdings Ltd and certain subsidiaries, with liens on most of DIFL’s and its guarantors’ assets.

However, the revolving credit facility will take payment priority in certain default scenarios.

The unsecured notes, issued by DML and DIFL US II LLC, will not be guaranteed at issuance.

The company explained that the notes are not registered under the US Securities Act, and are not being offered publicly in the United States.

Digicel, which has operations in Bermuda and across the Caribbean and Pacific regions, says it has been actively managing its debt in recent years amid efforts to streamline and stabilise its capital structure.