Proximus (EBR:PROX) has priced its 10-year €500m (US$557m) senior unsecured notes at 97 bps over 10-year mid-swaps, equivalent to a 1.875% coupon.
Proximus (EBR:PROX) has priced its 10-year €500m (US$557m) senior unsecured notes at 97 bps over 10-year mid-swaps, equivalent to a 1.875% coupon.
The Belgian incumbent indicated that it sought to take advantage of low interest rates to push out its maturities.
BNP Paribas, ING Bank, JP Morgan, Crédit Agricole and Lloyds served as joint bookrunners, placing the notes with more than 125 European institutional investors in a transaction that was four times oversubscribed.
“These transactions will enable Proximus to lengthen its average debt maturity profile while reducing its future cost of funding,” the company said in a statement.
Most of the proceeds will be used to finance a simultaneous tender offer, managed by BNP Paribas and ING.
It is inviting holders of its outstanding €950m 4.375% bonds due November 2016 and its €500m outstanding 3.875% bonds due February 2018 to tender their notes for purchase against cash.
Proximus, which rebranded from Belgacom in September last year, will pay a “price calculated according to market convention in reference to the relevant yield to maturity” for any notes validly tendered and accepted pursuant to the offer, which is open until 29 September.
The operator’s long-term senior debt is rated A1 by Moody’s and A by Standard & Poor’s.