Danish incumbent telco TDC has announced plans to issue a hybrid bond and a eurobond to repay the bulk of the €1.6bn bridge facility it took out to buy Norwegian cableco Get last October.
It has offered a €750m (US$852m) hybrid with a 1000-year…
Danish incumbent telco TDC has announced plans to issue a hybrid bond and a eurobond to repay the bulk of the €1.6bn bridge facility it took out to buy Norwegian cableco Get last October.
It has offered a €750m (US$852m) hybrid with a 1000-year tenure and a first par call date in February 2021.
The unsecured notes priced at par and will pay a 3.5% coupon. They will be deeply subordinated, senior only to the telco’s ordinary shares.
It intends to trade the new hybrid on the Irish Stock Exchange, and said full terms will be announced in a drawdown prospectus dated on or about 24 February 2015.
BNP Paribas, JP Morgan, Morgan Stanley and SEB are lead managers on the offering. The operator expects Moody’s, S&P and Fitch to rate the hybrid Ba2, BB+ and BB+, respectively.
TDC has also announced it will issue an €800m bond under its EMTN programme.
The 12-year senior unsecured notes, which will also trade in Ireland, priced at 99.04 and carry a 1.75% coupon.
These bonds are expected to receive investment grade ratings of Baa3, BBB and BBB from Moody’s, S&P and Fitch, respectively, TDC said.
The average interest rate across the two debt issuances is 2.60%.
Fitch said earlier this week that TDC had proposed to issue just €500m in callable subordinated capital securities.
The ratings agency changed its outlook on the telco’s BBB rating to “negative” on 9 February, citing a potentially slower pace of de-leveraging than anticipated following the Get purchase.
