Vodafone has raised US$6bn in a five-tranche bond offering with maturities ranging from February 2016 to February 2043.
The issue consists of a US$900m 0.9% notes due 2016, US$1.4bn 1.5% notes due 2018, US$1.6bn 2.95% notes due 2023, US$1.4bn 4.375%…
Vodafone has raised US$6bn in a five-tranche bond offering with maturities ranging from February 2016 to February 2043.
The issue consists of a US$900m 0.9% notes due 2016, US$1.4bn 1.5% notes due 2018, US$1.6bn 2.95% notes due 2023, US$1.4bn 4.375% notes due 2043 and US$700m floating-rate notes due 2016.
The UK-based telco intends to list the notes on the New York Stock Exchange and use the net proceeds for general corporate purposes, according to a SEC filing. The company expects delivery of the notes to take place on or about 19 February.
The US$900m notes priced at 99.888% of the principle amount plus accrued interest, the US$1.4bn 2018 notes at 99.54%, the US$1.6bn at 99.537%, the US$1.4bn 2043 notes at 98.716% and the US$700m at 100%.
Vodafone said the notes will rank equally with all of the group’s existing and future unsecured and subordinated debt. As the issuer is a holding company, the notes will rank junior to debt and other liabilities of subsidiaries.
Underwriters for the offering were Barclays, HSBC, JP Morgan, Mitsubishi UFJ and Morgan Stanley. The Bank of New York Mellon acted as trustee and principal paying agent.
Vodafone reported revenues of £11.4bn for Q4 2012, down 2% year-on-year. Group service revenue stood at £10.4bn, down 2.2%. Net debt at 31 December 2012 totalled £23.3bn, down from £25.5bn at the end of 2011. Free cash flow at the end of Q4 2012 stood at £1.2bn.
Commenting on the results last week, CEO Vittorio Colao said they reflect the still “very difficult” market conditions in Europe.
“We are addressing this through firm actions on cost efficiency and continuing to invest in areas of growth potential. We continue to make progress in our Vodafone 2015 strategy, with good revenue growth in data and emerging markets, the launch of LTE services in four other markets and the acquisition of new spectrum.”
Vodafone last tapped the bond markets in September 2012 when it priced US$2bn of notes in two tranches due 2012 and 2022.
