Telefonica begins tender offer for four euro-denominated notes

By Sarah Lizee

Olympia, Wash., May 13 – Telefonica, SA subsidiary Telefonica Emisiones, SAU launched a capped tender offer for four series of euro-denominated notes, according to a notice.

The following notes are included in the tender offer:

• €1 billion of 3.961% instruments due March 2021 (ISIN: XS0907289978) for a fixed purchase yield of 0.25% and an expected purchase price of 103.124;

• €1 billion of 1.477% instruments due September 2021 (ISIN: XS1290729208) for a fixed purchase yield of 0.35% and an expected purchase price of 101.475;

• €1.4 billion of ¾% instruments due April 2022 (ISIN: XS1394777665) for a fixed purchase yield of 0.45% and an expected purchase price of 100.564; and

• €1.25 billion of 2.242% instruments due May 2022 (ISIN: XS1069430368) for a fixed purchase yield of 0.45% and an expected purchase price of 103.584.

The expected purchase prices are based on an expected settlement date of May 22.

Holders will also receive accrued interest.

The tender cap will be decided by the issuer.

The offer will expire at 11 a.m. ET on May 19.

Telefonica said the purpose of the offer is to proactively manage its senior debt as well as to manage its liquidity in an efficient manner.

Telefonica intends to issue new euro-denominated senior debt securities under its €40 billion program. The tender offer is conditioned on the successful completion of the issue of the new instruments.

Holders who wish to subscribe for new notes in addition to tendering existing notes may receive priority in allocation of the new notes.

Tendered notes may be subject to pro rata scaling.

The dealer managers are Barclays Bank Ireland plc (eu.lm@barclays.com), Merrill Lynch International (+44 20 7996 5420, DG.LM-EMEA@bofa.com) and Goldman Sachs International (+44 20 7552 6157, liabilitymanagement.eu@gs.com).

The tender agent is Lucid Issuer Services Ltd. (+44 20 7704 0880, telefonica@lucid-is.com).

The telecommunications group is based in Madrid.

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