By Cristal Cody
Tupelo, Miss., March 1 – Telefonica Emisiones SAU sold $3.5 billion of senior notes (Baa3/BBB/) in two tranches on Wednesday, according to a market source.
The company priced $1.5 billion of 4.103% 10-year notes at a spread of Treasuries plus 165 bps.
Telefonica placed $2 billion of 5.213% 30-year notes at a spread of Treasuries plus 215 bps.
Both tranches priced on the tight side of guidance.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BBVA Securities Inc., BNP Paribas Securities Corp. and Santander Investment Securities Inc. were the bookrunners.
The notes are guaranteed by Telefonica SA.
The notes may be redeemed at the greater of par plus interest and a make-whole call, according to a 424B5 filing with the Securities and Exchange Commission.
Proceeds will be deposited with Telefonica SA to be used for general corporate purposes.
The telecommunications group is based in Madrid.
| Issuer: | Telefonica Emisiones SAU
|
| Guarantor: | Telefonica SA
|
| Amount: | $3.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BBVA Securities Inc., BNP Paribas Securities Corp. and Santander Investment Securities Inc.
|
| Trade date: | March 1
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Ten-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | March 8, 2027
|
| Coupon: | 4.103%
|
| Spread: | Treasuries plus 165 bps
|
| Price guidance: | Treasuries plus 170 bps area, plus or minus 5 bps
|
|
|
| Thirty-year notes
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| Amount: | $2 billion
|
| Maturity: | March 8, 2047
|
| Coupon: | 5.213%
|
| Spread: | Treasuries plus 215 bps
|
| Price guidance: | Treasuries plus 220 bps area, plus or minus 5 bps
|
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