Jazztel p.l.c. (Nasdaq: JAZZ), a rapidly expanding data and telecommunications operator with activities in Spain and Portugal, has announced today the repurchase of 114.3 million of its high yield bonds, representing approximately 13.5% of its total high yield debt outstanding.

Commenting on the bond purchases Jazztel p.l.c. CEO Antonio Carro said: "We are very pleased with this transaction, which has allowed us to reduce our total debt outstanding significantly while at the same time improving our fully funded position by in excess of Euro 10 million. We are very confident that this transaction creates excellent value for Jazztel and for its shareholders."

Miguel Salis, Jazztel p.l.c. CFO, added: "We have repurchased Euro 114.3 million of Jazztel bonds for Euro 36.9 million. Additionally we will receive over the coming months the Euro 15.9 million in monies placed in escrow for future interest payments on these bonds, thus reducing our net cash outflow to Euro 21.0 million. Giving effect to receipt of the escrow proceeds, we were able to purchase the bonds at a 81.7 % discount to face value. Over the life of the bonds this transaction results in cumulative savings in cash interest payments of Euro 131 million. Together with the Euro 114.3 million of principal repayment no longer necessary we will have to pay Euro 245.3 million less in cash expenses over the next 9 years."

Jazztel PLC