Danish incumbent TDC has proposed a €500m issue of callable subordinated capital securities, according to ratings agency Fitch.
The proceeds from the hybrid offering will be used to finance its acquisition of Norwegian cableco Get, which it bought for…
Danish incumbent TDC has proposed a €500m issue of callable subordinated capital securities, according to ratings agency Fitch.
The proceeds from the hybrid offering will be used to finance its acquisition of Norwegian cableco Get, which it bought for €1.69bn last October.
The hybrids have a 1,000 year maturity and are deeply subordinated, senior only to TDC’s ordinary shares.
Fitch rated the securities BB+ and said they qualify for 50% equity credit as they “meet [its] criteria with regard to subordination, effective maturity of at least five years, full discretion to defer coupons for at least five years and limited events of default, as well as the absence of material covenants and look-back provisions”.
TDC declined to comment on the issuance.
On 9 February, Fitch changed its outlook on TDC’s BBB rating to “negative”, citing a potentially slower pace of de-leveraging than anticipated following the Get purchase.
That same day, TDC disclosed that Capital Group, a Los Angeles-based investment firm, had boosted its stake in the operator to more than 15%. Capital Group was already TDC’s largest shareholder and is also invested in Swedish telco TeliaSonera. Analysts have previously suggested to TelecomFinance that consolidation among Nordic operators is on its way.
