Greek incumbent OTE has announced plans to issue a new four-year bond, reportedly worth at least €300m (US$318m).
Greek incumbent OTE (OTCMKTS:HLTOY) has announced plans to issue a new four-year bond, reportedly worth at least €300m (US$318m).
The new bond, issued under the company’s global medium term note programme, will be euro-denominated and bear a fixed interest rate, according to a regulatory filing.
The bonds will finance a cash tender offer for up to €250m (US$265.4m) of its outstanding bonds maturing in May 2016, and up to €50m (US$53m) of its outstanding bonds due February 2018, according to IFR.
The company said it would repurchase the May 2016 bonds at 101.50%, and the February 2018 bonds at a spread of 350 bps over mid-swaps.
OTE said it would determine the total value once it prices the new bond issue.
Citigroup, Deutsche Bank and HSBC were due to host an investor call this afternoon, according to IFR.
A spokesperson for Deutsche Telekom, which owns 40% plus one share of OTE, declined comment beyond the filing, while OTE was not available for comment by press time.
Bondholders taking part in both the new bond issue and the 2016 tender will be prioritised, the company said.
OTE reported revenue of €3.92bn (US$4.16bn) for FY 2014, when it claimed to have 4.44 million customers across fixed-line, broadband and TV. Mobile arm Cosmote had 7.3 million customers for that period.