Telefonica Deutschland (O2) has placed a €600m debut benchmark bond.
The fixed-rate senior unsecured notes carry a 1.875% coupon and were priced at 99.162%, equal to a spread of 98 basis points over the five-year Euro midswap rate. The maturity date…
Telefonica Deutschland (O2) has placed a €600m debut benchmark bond.
The fixed-rate senior unsecured notes carry a 1.875% coupon and were priced at 99.162%, equal to a spread of 98 basis points over the five-year Euro midswap rate. The maturity date is 22 November 2018.
Bank of America Merrill Lynch, BayernLB, Commerzbank and UBS acted as joint bookrunners for the transaction.
The telco said the transaction was highly oversubscribed, generating strong demand from both private and institutional investors. This demand, together with the 2.053% yield, prompted the company to upsize the offering from an initial €500m benchmark target.
Net proceeds will be used for general corporate purposes. The company said its net debt will not increase after the transaction.
Telefonica Deutschland CFO Rachel Empey described the offering as “a great success”, saying the strong demand reflects investors’ confidence in the company’s strategy.
The bonds will be listed for trading on the Luxembourg Stock Exchange as of 22 November.
Telefonica Deutschland is currently awaiting EC clearance for its planned €8.55bn (US$11.6bn) acquisition of Dutch telco KPN’s German mobile unit E-Plus.
