LONDON - IHS Holding Limited (NYSE: IHS), a major global provider of shared communications infrastructure, announced today its intention to organize a Global Investor Call, in coordination with several leading banks, to discuss a potential offering of Senior Notes. The company, which is rated B+ (Stable) by both S&P and Fitch, has engaged Citi, Goldman Sachs (NYSE:GS) Bank Europe SE, Rand Merchant Bank, and Standard Chartered (OTC:SCBFF) Bank as Joint Global Coordinators and Joint Bookrunners for this event.
The call, scheduled for today at 3:00 pm UK time, will precede the potential issuance of a dual-tranche 5.5NC2 and 7NC3 Reg S / 144A USD benchmark Senior Notes offering, contingent on market conditions. J.P. Morgan will also serve as a Joint Bookrunner, with Absa, Access Bank plc, RBC Capital Markets, and Standard Bank on board as Co-Managers.
In a strategic move to secure initial investment, IHS Towers has confirmed intentions from the International Finance Corporation (IFC), Emerging Africa & Asia Infrastructure Fund Limited (EAAIF), and The Société de Promotion et de Participation pour la Coopération Économique S.A. (PROPARCO) to place orders totaling up to $170 million, subject to the final terms and offering conditions.
Further to this announcement, IHS Towers has launched a tender offer to repurchase up to $250 million of its 5.625% Senior Notes due 2026, and another tender offer combined with a consent solicitation for up to $475 million of its 8.000% Senior Notes due 2027. These buybacks are conditional upon the successful completion of the new issuance. The remaining proceeds from the new issuance are earmarked for the repayment of a group bilateral loan, transaction fees and expenses, accrued interest, and general corporate purposes.
IHS Towers is one of the world's largest independent owners and operators of shared communications infrastructure, focusing on emerging markets, with over 40,000 towers across ten markets.
The Notes, which are not registered under the U.S. Securities Act of 1933, will not be offered or sold within the United States or to U.S. persons, barring certain exemptions. They are also directed specifically at non-retail investors in the European Economic Area and the United Kingdom (TADAWUL:4280).
This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other security.
In other recent news, IHS Holding Ltd has successfully procured a new term loan worth $439 million, which will be used to repay an existing term loan due in October 2025. This strategic move is expected to maintain the company's leverage at neutral levels. The company has also reported strong second-quarter financial results for 2024, with a growth in revenue, adjusted EBITDA, and a decrease in capital expenditures. IHS Holding has also secured a significant commercial agreement with MTN, renewing leases across various operational regions. On the other hand, TD Cowen has raised its price target for IHS Holding to $14, maintaining a Buy rating, while RBC Capital has adjusted its price target for the company, lowering it to $7, while still maintaining an Outperform rating. The company is conducting a strategic review to improve its governance framework and unlock shareholder value. With approximately $12.3 billion in contracted revenues, IHS Holding remains strategically focused on growth and efficiency.
InvestingPro Insights
As IHS Holding Limited (NYSE: IHS) prepares for its Global Investor Call and potential Senior Notes offering, investors may find additional context from InvestingPro's data and tips particularly relevant.
According to InvestingPro data, IHS currently has a market capitalization of $922.61 million USD. This valuation comes amid a challenging period for the company, with revenue declining by 16.68% over the last twelve months as of Q2 2024. Despite this, IHS maintains a strong gross profit margin of 48.62%, indicating efficient cost management in its core operations.
An InvestingPro Tip highlights that IHS's valuation implies a strong free cash flow yield. This could be an attractive point for potential investors in the company's new Senior Notes, as it suggests the company may have the financial flexibility to meet its debt obligations.
Another InvestingPro Tip notes that analysts predict the company will be profitable this year, despite not being profitable over the last twelve months. This forward-looking perspective aligns with IHS's strategic financial moves, including the tender offers and potential new note issuance.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips for IHS Holding Limited, providing a deeper understanding of the company's financial position and prospects.
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