Telefonica has priced, at par, a SFr225m (US$247.3m) bond, which carries a coupon of 2.595% and matures on 23 October 2020.
The spread is equivalent to 150 basis points over mid-swaps. Proceeds are to be used to prepay debt set to mature over the next…
Telefonica has priced, at par, a SFr225m (US$247.3m) bond, which carries a coupon of 2.595% and matures on 23 October 2020.
The spread is equivalent to 150 basis points over mid-swaps. Proceeds are to be used to prepay debt set to mature over the next few years.
“[It] follows Telefonica’s prudent financing policy which enables the company to maintain high levels of liquidity,” a spokesperson for the Spanish incumbent said.
UBS was the lead manager for the issue.
The new issue brings Telefonica’s total financing activity for the year-to-date to €10bn, the spokesperson noted.
The Madrid-based company last tapped bond markets in mid-September, when it issued a €1.75bn (US$2.3bn) dual-tranche hybrid bond to part fund its planned acquisition of KPN’s German mobile operator E-Plus. The deal recently received shareholders’ approval.
Telefonica’s total debt and commitments stood at €51.77bn (US$70bn) at the end of June 2013. The company aims to reduce this to €47bn (US$63.57bn) by the end of the year.
