Telefonica Deutschland (O2) has placed a seven-year, €500m (US$675.83m) benchmark bond.
The senior unsecured notes carry a coupon of 2.375% and mature on 3 February 2021. They priced at 99.624%, equal to an emission spread of 100 basis points over the…
Telefonica Deutschland (O2) has placed a seven-year, €500m (US$675.83m) benchmark bond.
The senior unsecured notes carry a coupon of 2.375% and mature on 3 February 2021. They priced at 99.624%, equal to an emission spread of 100 basis points over the seven-year euro midswap rate.
O2 said the offering attracted 155 orders, with those from the top 15 investors totalling €500m. The order book was two times oversubscribed, with German and Austrian investors receiving the largest allocation (about 28% of the total). Fund managers were particularly well represented, receiving about 61% of the total allocation.
Proceeds will be used for general corporate purposes and not increase the company’s net debt, O2 said.
CFO Rachel Empey described the placement as “another big success” for the company. “After a very successful debut transaction in November 2013, this is an important step to further establish ourselves in the debt capital markets and further broaden our investor base.”
HSBC, UBS and UniCredit acted as joint bookrunners for the transaction.
Frankfurt-listed O2’s debut benchmark bond last November totalled €600m (US$809m), carries a coupon of 1.875% and matures in November 2018.
The telco, part of Spain’s Telefonica group, is currently awaiting EC clearance for its planned €8.55bn (US$11.6bn) acquisition of Dutch telco KPN’s German mobile unit E-Plus.
O2 reported total revenues for the first nine months of 2013 of €3.67bn (US$4.96bn) and OIBDA of €864m (US$1.17bn). Net debt on 30 September stood at €745m (US$1.01bn).
