Indebted Spanish telco Telefonica has priced a new dual-tranche offering denominated in Swiss francs.
The issuance is for SFr400m (€332m) and is being led by UBS and BNP Paribas.
The first tranche is for SFr250m (€207m) and matures in 2018,…
Indebted Spanish telco Telefonica has priced a new dual-tranche offering denominated in Swiss francs.
The issuance is for SFr400m (€332m) and is being led by UBS and BNP Paribas.
The first tranche is for SFr250m (€207m) and matures in 2018, carrying a coupon of 2.718%.
It priced at par, 230 basis points over mid-swaps.
The second tranche is for SFr150m (€125m) and carries a coupon of 3.45%. It priced at par giving it a spread of 255 basis points above mid-swaps.
The offering closes on 14 December.
At the end of October Telefonica issued €1.2bn maturing 2022 and earlier that month it offered €1.2bn maturing 2020.
In its Q3 results Telefonica reported net debt of €56bn for the end of September – down from €58bn at the end of Q2 – and announced it expects a further reduction of its debt pile to €52.8bn should agreed disposals and restructuring close as planned.
It hopes to reduce its net debt to €50bn by the end of the year.
To sell PT stake, towers
In other news El Economista reported that Telefonica is set to sell its 2% stake in Portugal Telecom (PT) in the coming weeks and 250 towers to Spanish infrastructure conglomerate Abertis.
The two disposals would raise €86m, according to the report.
In Telefonica’s Q3 earnings call its CFO Angel Vila said: “We still maintain a small stake in PT, which we are monitoring market conditions to see when is the best moment to monetize, and we have received expressions of interest from potential interested parties on some of our assets.”
The telco has also openly discussed the possibility of spinning-off its LatAm division. Yesterday the head of Telefonica’s UK business said there was no need to list the company’s British division amid speculation from analysts that the company might be thinking about it.
