Spanish operator Telefonica has priced a two-tranche dollar-denominated US$2bn (€1.53bn) bond at par.
The first tranche of notes, for US$1.25bn (€957m), matures in five years and carries a coupon of 3.192%, to yield 250 basis points over US…
Spanish operator Telefonica has priced a two-tranche dollar-denominated US$2bn (€1.53bn) bond at par.
The first tranche of notes, for US$1.25bn (€957m), matures in five years and carries a coupon of 3.192%, to yield 250 basis points over US treasuries. The second portion is for US$750m (€574m) and has a 4.57% interest rate, 287.5 basis points above the spread. These notes will mature in 2023.
BNP Paribas, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and Societe Generale are the joint bookrunners.
The offering is set to be completed on 29 April 2013 and the incumbent expected both tranches to be rated BBB (negative) by S&P, BBB+ (negative) by Fitch, and Baa2 (negative) by Moody’s.
In an SEC filing Telefonica said it would use the proceeds for general corporate purposes.
The Madrid-headquartered telco is looking to cut its debt by more than €4bn by 2014, to below €47bn. Last year it shaved more than €5bn off its pile.
So far this year the telco has sold two eurobonds for €2.5bn, secured €1.2bn in vendor financing, and sold its treasury stock for €975m. It is reported to be considering asset sales and, after shelving an IPO of its LatAm businesses, spinning off its Colombian unit.
