The purpose of the Tender Offer is for the Company to proactively manage its capital structure, reduce gross debt and leverage by acquiring the Notes funded out of equity proceeds and also provide liquidity to Noteholders at a premium to the market.
The Bharti Airtel Limited group continues to execute on its intent to deleverage and pursue its strategies towards that end. In line with this, it has been actively exploring various equity driven initiatives, including those previously announced regarding its Africa business, so as to proactively manage its balance sheet and capital structure to align them to the grou p's core conservative philosophy.
Accordingly, the Company's parent, Airtel Africa, a U.K. incorporated subsidiary of Bharti Airtel, recently made a successful primary equity issuance of US$1.25 billion to six leading global investors comprising Warburg Pincus, Temasek, Singtel, SoftBank Group and others. The proceeds of this equity issuance are intended to be used to reduce Airtel Africa's existing debt of approximately US$5 billion on the date of the announcement.
The proceeds of this equity issuance are now fully realized and available as cash. The Company also carries organic cash on its balance sheet. The Company wishes to utilize the proceeds of this equity issuance and the cash available to it to reduce its existing debt by offering to purchase 'any and all' of the Notes pursuant to the Tender Offer. Via the Tender Offer, the Company is also providing liquidity to the Noteholders at a specified premium over the market price at launch.
The Tender Offer is in addition to the previously announced tender offer cum repayment of EUR 1 billion 4.000% notes maturing December 2018, for which funding has been drawn and available as cash with the Company.
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