Spain’s Telefonica has launched a new six-year eurobond offering which has priced at par.
Bank of America Merrill Lynch, Caixabank, Mediobanca, RBS, Santander and UBS are bookrunners on the €750m issue.
The notes carry 2.736% interest and were…
Spain’s Telefonica has launched a new six-year eurobond offering which has priced at par.
Bank of America Merrill Lynch, Caixabank, Mediobanca, RBS, Santander and UBS are bookrunners on the €750m issue.
The notes carry 2.736% interest and were rated Baa2 by Moody’s.
It was priced 175 basis points over mid-swaps, at the lower end of what it was reported to have initially targeted. The offering is set to close on 29 May.
The incumbent last visited the debt markets in April raising €1.53bn through a two-tranche dollar-denominated offering.
The telco has already issued two eurobonds this year for a total of €2.5bn: In January it sold €1.5bn in 10-year notes carrying 3.987% interest; In March it placed €1bn of 3.961% eight-year notes.
Telefonica is looking to cut its debt to below €47bn by the year’s end. Last year it shaved more than €5bn off its pile.
In addition to the bonds it has secured €1.2bn in vendor financing and sold its treasury stock for €975m. A few weeks ago it sold a 40% stake in its Central American unit for €382m. It is reported to be considering further asset sales and to be examining various options in LatAm.
