Colombia Telecomunicaciones (Coltel), majority owned by Telefonica, has sold US$750m senior notes maturing in 2022 through a private placement.
The notes were priced at par and carry a coupon of 5.375%, according to market reports.
Credit Suisse, HSBC…
Colombia Telecomunicaciones (Coltel), majority owned by Telefonica, has sold US$750m senior notes maturing in 2022 through a private placement.
The notes were priced at par and carry a coupon of 5.375%, according to market reports.
Credit Suisse, HSBC and JP Morgan were the joint bookrunning managers for the sale.
The proceeds from the offering are expected to be used to refinance existing indebtedness and improve Coltel’s debt maturity profile.
In a statement Telefonica said there was US$8bn of demand for the notes and that the operation involved the participation of 350 investors, predominantly from the US and Europe.
In the days leading up to the issuance Telefonica had been on a roadshow in a number of Latin American and US cities, as well as in London.
Fitch and S&P both rated the debt BB.
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.
Colombia Telecomunicaciones is the largest fixed-line operator in Colombia.
