Unlocking the Future: OML’s Strategic Debt Refinance Plan
Amidst the ebb and flow of financial currents, Jamaica-based Outsourcing Management Limited (OML), known as iTel, is setting sail on a new course. With plans to refinance $3.5 billion in debt, the company is offering bondholders a unique opportunity to convert their holdings into shares, contingent upon OML’s listing on the stock exchange. This bold move marks a pivotal moment in OML’s financial trajectory under the leadership of Yoni Epstein, the visionary CEO and founder.
Diving into the details of this groundbreaking decision, here are the key points to consider:
Refinancing Terms:
– OML is navigating the fundraise process, slated to wrap up by January, with an eye on a transformative outcome.
– Following the prevailing trend of decreasing interest rates, OML’s bond refinancing will introduce revised terms featuring elevated yields. US-indexed notes will see a jump from 5.5% to 7.0%, while local currency notes will rise from 8.5% to 9.5%, as advised by Sygnus Capital, the bond’s arranger.
Conversion Options and IPO Prospects:
– Bondholders have the enticing option to convert their bond holdings into shares at a 10% discount in the event of an IPO, hinting at future prospects for liquidity.
– Epstein hints at an IPO on the horizon, projecting a liquidity event within the next three years, steering OML towards a new era of growth and expansion.
Provisions and Tranche Structure:
– Stringent provisions are outlined for bondholders, allowing them to demand full repayment in case of default and offering a 3.0 percentage point interest increase under certain default scenarios.
– The bond is segmented into four tranches: Tranche I ($984 million), Tranche II ($275 million), Tranche III ($2.0 billion), and Tranche IV ($249.5 million), ensuring a structured approach to financial management and repayment.
Laying the Foundation for Tomorrow:
– OML’s journey from humble beginnings in 2012 with just seven employees to a powerhouse with over 6,000 staff across various locations in Jamaica, USA, Belize, Honduras, and St Lucia speaks volumes about its trajectory.
– Epstein emphasizes OML’s commitment to growth and innovation, fueled by strategic investments that have propelled the company to the forefront of the outsourcing industry.
As OML charts this new course of debt refinancing and transformation, it stands as a beacon of resilience and vision in the financial landscape. The unfolding chapters of OML’s story promise a future filled with promise and potential, underpinned by strategic foresight and unwavering determination. Stay tuned for the next chapter in OML’s journey to prosperity.
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