By Andrea Heisinger
New York, April 18 - Telefonica Emisiones SAU gave the terms of its $2 billion sale of senior notes (Baa2/BBB/BBB+) in two tranches in FWP filings with the Securities and Exchange Commission.
A $1.25 billion tranche of 3.192% five-year notes sold at par to yield Treasuries plus 250 basis points. There is a make-whole call at Treasuries plus 40 bps.
There was also $750 million of 10-year bonds priced at par to yield 4.57% with a spread of 287.5 bps over Treasuries. The tranche carries a make-whole call at 45 bps over Treasuries.
Initial price guidance early on Wednesday was in the Treasuries plus 200 bps to 300 bps range for both tranches, a source said.
The notes are guaranteed by Telefonica SA.
BNP Paribas Securities Corp., Goldman Sachs & Co. and HSBC Securities (USA) Inc. were the active bookrunners. Passive bookrunners were J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and SG Americas Securities LLC.
Proceeds will be deposited with Telefonica SA to be used for general corporate purposes.
The unit of the Madrid-based telecommunications group last priced bonds in the U.S. market in a $2.75 billion offering in two tranches on Feb. 7, 2011. That trade included a 3.992% five-year note sold at 173 bps over Treasuries and a 5.462% 10-year bond priced at Treasuries plus 183 bps.
| Issuer: | Telefonica Emisiones SAU
|
| Guarantor: | Telefonica SA
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co., HSBC Securities (USA) Inc. (active), J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SG Americas Securities LLC (passive)
|
| Trade date: | April 17
|
| Settlement date: | April 29
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | April 27, 2018
|
| Coupon: | 3.192%
|
| Price: | Par
|
| Yield: | 3.192%
|
| Spread: | Treasuries plus 250 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | April 27, 2023
|
| Coupon: | 4.57%
|
| Price: | Par
|
| Yield: | 4.57%
|
| Spread: | Treasuries plus 287.5 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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