Colombia Telecomunicaciones (Coltel) plans to issue US$750m senior notes. According to a report from Fitch, proceeds from the offering are expected to be used to refinance existing indebtedness, improving Coltel’s debt maturity profile.
Coltel merged…
Colombia Telecomunicaciones (Coltel) plans to issue US$750m senior notes. According to a report from Fitch, proceeds from the offering are expected to be used to refinance existing indebtedness, improving Coltel’s debt maturity profile.
Coltel merged with Telefonica Moviles Colombia (Movistar) in June.
Telefonica owns 70% of the new company while the Colombian government holds the rest, with the option to increase its holding by an additional 3% by 2015 depending on the merged company’s operating performance .
Before the deal, Telefonica already held a 52% in stake in Colombia Telecomunicaciones, with the government owning the remainder.
Fitch expects to rate the proposed notes BB.
