(Alliance News) - Helios Towers PLC on Thursday said its wholly-owned subsidiary HTA Group Ltd successfully priced its offering of USD850 million in senior notes.

The London-headquartered telecom tower company said the notes will mature in 2029 and have a coupon of 7.50%.

The proceeds of the notes will be used to repurchase outstanding senior notes due 2025 with a 7.00% coupon worth USD650.0 million, to partially repay repay amounts drawn under its loan facilities, to repay amounts drawn under its Senegal operating company facilities, alongside other payments.

"We are delighted to announce the successful pricing of our bond offering. The offering was three times oversubscribed, achieving a peak order book of USD2.5 billion. Importantly, despite the materially higher rate environment since our last bond issuance, we expect only a 10 [basis point] change in our cost of debt from this refinancing exercise, that also includes repaying a portion of our group and Senegal term facilities with the new proceeds, while at the same time extending our average debt maturity by two years, to extend our average remaining life to five years," said Chief Financial Officer Manjit Dhillon.

"This successful refinancing reflects the company's track record and market diversification since our last bond offering, and expected cash flow generation through to 2026. This has also been demonstrated through our rating upgrades by both Moody's and S&P to B+ equivalent, and Fitch updating their outlook to positive. We thank our bond investors for their ongoing support in the company and look forward to delivering value for all stakeholders through our sustainable business strategy in the years ahead."

Shares in Helios Towers were down 2.5% to 117.40 pence each in London on Thursday afternoon.

By Greg Rosenvinge, Alliance News senior reporter

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