Japanese telco Nippon Telegraph & Telephone Corp (NTT) is offering US$750m worth of 1.4% fixed-rate notes due 2017.
BofA Merrill Lynch, Barclays and Morgan Stanley acted as joint book-running managers, while BNP Paribas, Citigroup, Credit Suisse,…
Japanese telco Nippon Telegraph & Telephone Corp (NTT) is offering US$750m worth of 1.4% fixed-rate notes due 2017.
BofA Merrill Lynch, Barclays and Morgan Stanley acted as joint book-running managers, while BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan and UBS were co-managers.
The notes priced at 99.865 to yield 1.4%. NTT said it will pay interest on 18 January and 18 July of very year, starting on 18 January 2013.
These obligations will rank pari passu with all of NTT’s other unsubordinated indebtedness.
Proceeds of the offering will be used for general corporate purposes.
Standard & Poor’s assigned an ‘AA’ rating to the notes. Moody’s, which gave an ‘Aa2’, said that the “rating reflects the company’s sound credit profile, given its dominant market position in Japan’s telecommunications market, its advanced technological abilities, and its stable financial profile.
“Its rating however is constrained by its relatively high leverage and the mature and competitive market it operates in, which makes it likely revenue growth and debt reduction will be challenging. Offerings from smaller players are exerting price pressures and we expect this to remain a key factor for NTT’s rating over the next few years.”
It was yesterday announced that NTT Docomo, the mobile subsidiary of NTT, would form a partnership with several mobile giants – KPN, Rogers, SingTel, Telefonica, Telstra and Vimpelcom – to jointly develop M2M services for multinational corporations.
