Telecel Paraguay, a subsidiary of Millicom International Cellular S.A., will redeem in full $139,712,000 of its 5.875% Senior Unsecured Notes due 2027. The redemption will take place on April 29 2026 and the notes will be paid at 100 % of principal plus accrued and unpaid interest.
The move follows a consistent debt‑management strategy. The notes were originally issued in April 2019 for $300 million, with a subsequent re‑tap adding $250 million. Telecel Paraguay has previously redeemed portions of the same debt, including a $150 million redemption announced in September 2025 and a $150 million partial redemption scheduled for September 2024. In November 2022 the company also tendered to purchase up to $55 million of the notes.
The redemption reduces Telecel Paraguay’s long‑term debt exposure and brings its leverage closer to Millicom’s target. At the end of 2025 the group’s net debt was $5.36 billion, giving a leverage ratio of 2.31×. Millicom projects at least $900 million in equity‑free cash flow for 2026 and expects year‑end leverage around 2.5×. By paying down $139.7 million of senior debt, the subsidiary moves toward that target and strengthens its balance sheet.
Strategically, the redemption is part of Millicom’s broader focus on capital‑structure optimization and cash‑flow generation. The company’s 2025 results showed record equity‑free cash flow and an adjusted EBITDA margin of 47.2 %. With strong cash flow, Telecel Paraguay can afford to reduce debt without compromising investment or growth plans.
Telecel Paraguay remains the leading telecommunications operator in Paraguay, holding a 55 % market share in 2024 and maintaining an EBITDA margin of 37 %. The debt reduction supports its continued market leadership and positions the company to invest in network expansion and digital services while keeping leverage within the desired range.
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