MONTREAL—Telesystem International Wireless (TIW) announced its investors have agreed to a recapitalization plan, including the restructuring of its subordinated debentures and an increase in its economic ownership in ClearWave.
The company’s investors, Capital Communications CDPQ, U.F. Investments, an affiliate of Hutchison Whampoa, certain affiliates of J.P. Morgan Partners and Telesystem Limited, agreed that if specific transactions are completed, TIW’s US$394 million subordinated debt will be erased, and the company’s corporate debt will stand at US$278.8 million in senior secured debt. In addition, TIW’s ownership in ClearWave will jump from 45.5 percent to a maximum of 100 percent.
“These transactions will substantially complete the restructuring initiatives begun earlier this year when TIW significantly reduced its senior debt through an agreement with its bondholders,” explained Bruno Ducharme, president and chief executive officer (CEO) of TIW. “The transactions will collectively benefit TIW’s stakeholders by de-leveraging TIW’s balance sheet while increasing the company’s asset base.”
