Digicel Group Limited, operating in over 30 territories spanning the Caribbean, Central America, and the Pacific Islands, plans to sell 450 of its Caribbean cell towers in a bid to reduce its leverage. The Gleaner reported the deal should be finalized by the end of September.
According to Antonia Graham, head of group communication at Digicel Group, “To clarify, we have signed a sale and leaseback agreement for 450 towers in the Caribbean and the deal is expected to close at the end of the second quarter of this fiscal year. We will not be giving any other details at this time.”
The 450 towers represent “a fraction” of Digicel’s total towers across the region and the deal will reduce the company’s leverage ratio from 6.7 times debt to equity, to 5.7 times, following the sale and lease of the towers, reported The Gleaner.
The telecom made a loss of $217 million on revenues of $2.4 billion for its fiscal year ending March 2018. That equated to a more-than-sixfold contraction, relative to $34 million of annual losses since March 2017. However, at the operating level, Digicel’s earnings before EBITDA remained positive at $1 billion, declining two percent relative to the previous year. Its EBITDA margin remained at 43 percent, reported The Gleaner.
June 21, 2018
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