German telco Telefónica Deutschland has placed its first syndicated credit facility, of €750m (US$839m), in an effort to further diversify its funding profile. The company, which trades under the O2 brand, said the syndication was “significantly oversubscribed”.
German telco Telefónica Deutschland (FWB:O2D) has placed its first syndicated credit facility, of €750m (US$839m), in an effort to further diversify its funding profile.
The general purpose facility has a five-year tenor, which may be extended through to March 2023, the telco said in a statement.
The coordinating mandated lead arrangers for the transaction are BNP Paribas, Commerzbank and UniCredit Bank. An additional six banks have accepted offers to participate, the telco said, but did not name them.
Telefónica Deutschland, which trades under the O2 brand, said the syndication was “significantly oversubscribed”.
“After two successful bond issuances in 2013 and 2014 as well as the placement of a promissory note in 2015, the successful placement confirms Telefónica Deutschland’s strong capital markets position,” the company, part of Spain’s Telefónica group, said.
Telefónica Deutschland claimed to have 48.4 million customers as of 31 December 2015, 43.1 million of which were for mobile services. It leads the mobile market, competing with Deutsche Telekom and Vodafone.