Spain’s Telefonica is preparing to issue a euro-denominated hybrid bond that will be deeply subordinated and only rank senior to the incumbent’s share capital.
Fitch said the notes will qualify for 50% equity credit and planned to assign the paper a…
Spain’s Telefonica is preparing to issue a euro-denominated hybrid bond that will be deeply subordinated and only rank senior to the incumbent’s share capital.
Fitch said the notes will qualify for 50% equity credit and planned to assign the paper a BBB- rating.
Telefonica will split the hybrid between two tranches: a non-call for six years; and a non-call for 10 years.
It is the Spanish telco’s first hybrid issue since November, when it offered sterling-denominated hybrid perpetual subordinated securities which raised €716m.
The latest offering will mark Telefonica’s third major debt transaction of the year after it priced €200m worth of floating rate notes earlier this month, and sealed a €3bn five-year revolving credit facility in February.
Telefonica ended 2013 with €47.6bn in net debt – almost €6bn less than it reported at the end of 2012.
