Telefonica accepts tenders for €757.6 million of fixed-rate reset notes

By Marisa Wong

Los Angeles, Feb. 11 – Telefonica Europe BV said it has accepted for purchase €757.6 million of its outstanding €1 billion undated 5.5-year non-call deeply subordinated fixed-rate reset securities (ISIN: XS1490960942) guaranteed by Telefonica, SA tendered under its previously announced cash tender offer.

The issuer launched the offer on Feb. 3 and set the maximum acceptance amount at €1 billion on Feb. 4.

The maximum acceptance amount was set equal to the principal amount of new euro-denominated undated 8.25-year non-call deeply subordinated guaranteed fixed-rate reset securities issued under a concurrent offering.

The tender offer expired at noon ET on Feb. 10.

The company will purchase the existing securities at €103,310 per €100,000 principal amount. The company will also pay accrued interest to but excluding the settlement date.

The offer is expected to settle on Feb. 15, subject to satisfaction of the financing condition.

The company had said the purpose of the offer is to proactively manage its hybrid capital and also to give noteholders the opportunity to switch into the new notes ahead of an upcoming first call date.

Telefonica is a Madrid-based telecommunications company. The subsidiary issuer is based in the Netherlands.

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