Carlos Slim’s America Movil (AMX) is reportedly planning a dual-currency hybrid bond issue to be split between euros and sterling, newswires reported citing sources familiar with the matter.
The issue will mature in September 2073 and have three…
Carlos Slim’s America Movil (AMX) is reportedly planning a dual-currency hybrid bond issue to be split between euros and sterling, newswires reported citing sources familiar with the matter.
The issue will mature in September 2073 and have three parts: a euro bond in the low 5%, a euro bond in the mid 6%, and a sterling bond in the mid-to-low 6%, IFR quoted a bookrunner on the deal as saying.
The euro components will be callable in September 2018 and September 2023 respectively and the sterling component in 2020.
Deutsche Bank is the sole structuring adviser for the transaction, while Barclays and BNP Paribas are additional joint bookrunners, the report stated.
Mexico-based AMX previously made it clear it aims to expand outside the Americas and is said to be looking at potential European takeover targets, besides its current assets Dutch telco KPN and Telekom Austria. The IRF report cited an unidentified source as noting that M&A opportunities are the likely reason AMX opted for hybrid over other forms of financing. Unlike regular capital increases, hybrid issues do not dilute the shareholder base or affect debt-to-equity ratios.
Meanwhile, AMX affirmed its commitment to its €2.40 per share (€7.2bn total) offer to acquire the whole of KPN after an independent foundation charged with protecting the target moved to block the deal. The foundation had announced earlier in the day that it had exercised a call option written into KPN’s statutes and now held preference shares equal to 50% minus one vote of all outstanding company shares. In a press conference on the matter, the foundation called on AMX to make a “fair bid”.
In a strongly-worded statement later in the day, AMX said that while it remains committed to the deal, it is prepared to walk away if the foundation maintains its stance.
AMX was not immediately available for comment.
On 21 August, AMX announced that it had secured the funds to fully finance its proposed takeover of KPN. The telco said it had entered into binding credit facilities with “reputable global financial institutions”, but did not elaborate.
