Columbus International Inc. closes US$1.25 mil. Bond Offering, setting stage to fund continued Caribbean-Latin America expansion plans

Columbus International Inc. is a privately held diversified telecommunications company based in Barbados. The Company provides digital cable television, broadband Internet and digital landline telephony in Trinidad, Jamaica, Barbados, Grenada, St. Lucia and Curacao under the brand name FLOW and in St. Vincent & the Grenadines and Antigua under the brand name Karib Cable. Columbus also provides next generation connectivity and IT solutions, managed networking and cloud-based services under the brand Columbus Business Solutions. Through its subsidiary, Columbus Networks, the Company provides capacity and IP services, corporate data solutions and data center hosting throughout 42 countries in the greater Caribbean, Central American and Andean region.

Columbus International Inc. is a privately held diversified telecommunications company based in Barbados. The Company provides digital cable television, broadband Internet and digital landline telephony in Trinidad, Jamaica, Barbados, Grenada, St. Lucia and Curacao under the brand name FLOW and in St. Vincent & the Grenadines and Antigua under the brand name Karib Cable. Columbus also provides next generation connectivity and IT solutions, managed networking and cloud-based services under the brand Columbus Business Solutions. Through its subsidiary, Columbus Networks, the Company provides capacity and IP services, corporate data solutions and data center hosting throughout 42 countries in the greater Caribbean, Central American and Andean region.

Columbus International Inc. (“Columbus“) today announced that on March 31, 2014 it closed the issuance of a US$1,250,000,000 offering of senior unsecured notes. The notes were issued with a 7.375% coupon, priced at par and will mature in 2021.

The transaction was led by Citigroup, J.P. Morgan and RBC Capital Markets, acting as Joint Lead Managers and Joint Bookrunners. The bonds were sold following a road show conducted by management from March 17 to 23, 2014.

The transaction was led by Citigroup, J.P. Morgan and RBC Capital Markets, acting as Joint Lead Managers and Joint Bookrunners. The bonds were sold following a road show conducted by management from March 17 to 23, 2014.

A portion of the proceeds of the offering was used to retire US$640,000,000 senior secured 11.5% notes Columbus issued in 2009 as well as its US$212,000,000 senior unsecured 9.5% notes, and to fund make-whole fees on these two series of notes. The balance of the net proceeds may be applied to pay up to $100 million in dividends and for general corporate purposes, including the funding of an acquisition previously announced.

Commenting on the transaction, Columbus founder and chief executive officer, Brendan Paddick stated, "The successful closing of this significant financing is a true milestone in Columbus' history.  The markets have spoken and have validated both Columbus' vision and its business plan. The 6 times oversubscribed deal built an order book of close to US$8 billion, with demand from more than 300 investors around the world. Columbus has attracted a stable of world-class financial sponsors as we continue to aggressively expand and invest in the Caribbean and Latin American marketplace. Columbus is truly poised for future growth and continued network investment, now with a proven track record of repeated efficient access to the capital markets."

Commenting on the transaction, Columbus founder and chief executive officer, Brendan Paddick stated, “The successful closing of this significant financing is a true milestone in Columbus’ history. The markets have spoken and have validated both Columbus’ vision and its business plan. The 6 times oversubscribed deal built an order book of close to US$8 billion, with demand from more than 300 investors around the world. Columbus has attracted a stable of world-class financial sponsors as we continue to aggressively expand and invest in the Caribbean and Latin American marketplace. Columbus is truly poised for future growth and continued network investment, now with a proven track record of repeated efficient access to the capital markets.”

The bonds were not registered under the US Securities Act of 1933, as amended, and were offered and sold by Columbus outside the US under Regulation S, and in the US in a transaction exempt from registration under the US Securities Act. The bonds may not be offered or sold in the US absent registration under, or an applicable exemption from, the registration requirements of the US Securities Act of 1933, as amended.

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