Millicom aims to buy back Tigo Guatemala, Tigo Paraguay senior notes

Luxembourg-based Millicom launched tenders to buy up US$50mn in Tigo Paraguay and US$90mn in Tigo Guatemala senior notes due 2027 and 2032. 

The offers expire December 5 and relate to 5.875% of Telecel (Tigo Paraguay) and 5.125% of Comcel (Tigo Guatemala) senior notes. 

With the tender, Millicom aims to avoid interest payments and reduce overall consolidated debt.

Citigroup Global Markets and Scotia Capital are the dealer managers in the Paraguay operation, while BNP Paribas Securities, J.P. Morgan Securities and Scotia Capital are involved in the Guatemala one.

In 2021, Millicom bought the remaining 45% share in its Tigo Guatemala JV from Miffin Associates for US$2.2bn in cash, which has impacted results and financial performance.

As of September 30, Millicom debt amounted to US$6.87bn, stable compared to the end of Q2. About 63% of debt was held by operating entities and 37% was corporate debt. Net financial obligations totaled US$7bn.

“The key message is that we are on-track to meet our [organic cash flow] growth target of approximately 10% for this year to generate solid equity free-cash flow in 2022, in-line with our budget for the year, to invest about US$1bn,” CEO Mauricio Ramos said during the investor conference to discuss Q3 results. 

In Q3, revenue grew 37.9% year-on-year to US$1.39bn.