Published on 11/30/2018 in the Prospect News Investment Grade Daily.
New Issue: British Telecommunications details $1.38 billion of notes in two parts
By Devika Patel
Knoxville, Tenn., Nov. 30 – British Telecommunications plc offered further details about a $1,375,000,000 sale of senior notes (Baa2/BBB) that priced in two tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The $675 million of 4.5% five-year notes came at a spread of 165 basis points over Treasuries. The notes were sold at 99.973 to yield 4.506%.
Price guidance was at the Treasuries plus 170 bps area, plus or minus 5 bps.
British Telecommunications sold $700 million of 5.125% 10-year notes at a Treasuries plus 215 bps spread. These notes priced at 99.59 to yield 5.178%.
The notes were talked to price in the Treasuries plus 220 bps area, plus or minus 5 bps.
BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., MUFG, SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA Inc., NatWest Markets Securities Inc., Santander Investment Securities Inc., Skandinaviska Enskilda Banken AB and SG Americas Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
British Telecommunications is a London-based internet and phone services company.
| Issuer: | British Telecommunications plc
|
| Amount: | $1,375,000,000
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., MUFG, SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA Inc., NatWest Markets Securities Inc., Santander Investment Securities Inc., Skandinaviska Enskilda Banken AB and SG Americas Securities LLC
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $675 million
|
| Maturity: | Dec. 4, 2023
|
| Coupon: | 4.5%
|
| Price: | 99.973
|
| Yield: | 4.506%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Nov. 4, 2023, then a par call
|
| Price guidance: | Treasuries plus 170 bps area, plus or minus 5 bps
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | Dec. 4, 2028
|
| Coupon: | 5.125%
|
| Price: | 99.59
|
| Yield: | 5.178%
|
| Spread: | Treasuries plus 215 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Sept. 4, 2028, then a par call
|
| Price guidance: | Treasuries plus 220 bps area, plus or minus 5 bps
|
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