Business
Millicom announces the terms of its rights offering
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO AUSTRALIA, CANADA, HONG KONG OR SINGAPORE OR ANY OTHER
About this update from Millicom International Cellular S.a.
[{"type":"text","content":"NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO AUSTRALIA, CANADA, HONG KONG OR SINGAPORE OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE ADDITIONAL DOCUMENTS TO BE PREPARED OR REGISTERED OR REQUIRE ANY OTHER ACTIONS TO BE TAKEN. PLEASE REFER TO “IMPORTANT INFORMATION” AT THE END OF THIS PRESS RELEASE. Millicom announces the terms of its rights offering Luxembourg, May 18, 2022 – The board of directors of Millicom International Cellular S.A. (“Millicom”, the “Company” or “we”) has today, making use of the authorization provided for in the Company’s articles of association, resolved on a rights offering (the “Rights Offering”) granting preferential subscription rights to existing holders of shares and Swedish Depositary Receipts (“SDRs”) to subscribe for up to 70,357,088 shares in aggregate (including in the form of SDRs) and hereby announces the terms of the Rights Offering. Background:On November 12, 2021, Millicom announced the acquisition of the remaining 45% equity stake in our joint venture business in Guatemala (“Tigo Guatemala”) for $2.2 billion in cash. With this transaction, we now own a 100% equity interest in Tigo Guatemala and have improved our position as a leading telecommunication service provider in Central America. We financed the acquisition with a bridge loan provided by a group of leading international banks, in an original principal amount of $2,150 million, of which $350 million remains outstanding. We repaid approximately $1,800 million of the bridge loan with our cash on hand and the proceeds of $900 million in aggregate principal amount of 5.125% senior notes due 2032, issued on February 3, 2022, on behalf of Tigo Guatemala, as well as the net cash consideration received from the sale of our operations in Tanzania. In order to strengthen our balance sheet and repay the remaining part of the bridge loan, we are now raising approximately $746 million of new equity via the Rights Offering. We expect the net proceeds from the Rights Offering, after deducting estimated underwriting fees and offering expenses payable by us, to be up to $717 million (SEK 7,162 million). If the net proceeds of the Rights Offering exceed the amount necessary to repay the bridge loan, we will use such remaining proceed...