Digicel, businessman Denis O'Brien's telecoms company, is to raise $550 million in new funding in a private placement of senior secured notes.

The money will be used to pay down a revolving credit facility and pay off a $400 million term loan.

The company said any remaining proceeds will then be used for general corporate purposes

Last week, as it reported quarterly results, Digicel signalled it was considering taking action to refinance some of its debt.

The move will be carried out through a private placement and the speed with which it takes place will depend on uptake.

It is understood the company has received consent from the existing lenders to refinance the debt.

In January the company confirmed that 98% of the company’s existing holders of bonds worth $3 billion had agreed to swap them for new debt with later maturity dates.