Telecommunications Services of Trinidad and Tobago Ltd (TSTT) is seeking to raise up to $1.156 billion from local investors as part of a US$500 million ($3.4 billion) bond offering to refinance existing debt and ease financial pressures.
The proposed ten-year bonds are intended to extend the State-controlled telecommunications company’s repayment schedule and reduce the risk of “short-term liquidity pressures”, according to S&P Global Ratings, which has assigned the proposed notes a “BB-” rating.
“The notes will be issued under two currency tranches (a mix of US dollar and TTD upon market appetite and execution considerations) with a ten-year soft bullet structure with semi-annual equal amortisations in the last three years of the tenor,” S&P stated.
The local currency tranche carries an estimated coupon of 8.8% and an estimated yield to maturity of 8%, according to the local offering summary.
S&P said TSTT intends to use the net proceeds to refinance its existing debt and cover related transaction costs, fees and expenses.
According to S&P, as at March 31, 2026, TSTT’s debt included US$300 million in senior secured notes carrying interest of 8.875%, as well as Trinidad and Tobago dollar-denominated notes carrying interest of 8.3%. S&P’s statement also identified $476 million in additional notes and a $100 million commercial paper facility.
The existing notes are due in October 2029, with principal repayments scheduled in six semi-annual instalments beginning April 18, 2027.
“The proposed notes for up to US$500 million will be on a senior secured basis, on equal conditions as the current 2029 notes through the same existing secured bond collateral package. We do not expect the company to maintain any holdout amount stemming from its current notes due 2029. Through this liability management we expect the company to extend its debt maturity profile to a longer tenor with a nine-year average life and avoid potential short-term liquidity pressures,” S&P stated.
S&P described the transaction as “100% debt neutral”, saying it did not expect a significant increase in TSTT’s overall debt.
The agency estimated that TSTT’s adjusted debt-to-EBITDA ratio should remain around four times earnings, or lower, over the next 12 months. EBITDA, or earnings before interest, taxes, depreciation and amortisation, is commonly used to assess a company’s operating performance and capacity to service debt.
The proposed notes’ “BB-” rating is in line with TSTT’s issuer credit rating. S&P said this indicates there is “no significant subordination risk” in the company’s capital structure after the refinancing.
