By Paul A. Harris
Portland, Ore., Nov. 14 – Madrid-based telecom Telefonica, SA priced a €750 million issue of Telefonica Europe BV 7 1/8% green deeply subordinated guaranteed fixed-rate reset securities (Ba2/BB/BB+) at par on Monday, according to market sources.
Price talk was in the 7¼% area. Initial guidance was 7 5/8% to 7¾%.
The deal played to an order book containing more than 300 accounts, including a broadly diversified investor base with international investors accounting for more than 90% of the orders, according to a company press release.
The issue was more than six-times oversubscribed, the release stated.
Barclays, BNP Paribas, BofA and Citigroup are the stabilization managers.
An amount equal to the proceeds will be subject to specific eligibility criteria to be applied to finance new projects or refinance existing projects as detailed in Telefonica's sustainable development goals framework, which is in accordance with the Green Bond Principles 2018, Social Bond Principles 2020 and Sustainability Bond Guidelines 2018, each published by the International Capital Market Association.
| Issuer: | Telefonica Europe BV
|
| Amount: | €750 million
|
| Issue: | Green deeply subordinated guaranteed fixed-rate reset securities
|
| Maturity: | Perpetual
|
| Stabilization managers: | Barclays, BNP Paribas, BofA and Citigroup
|
| Coupon: | 7 1/8%
|
| Price: | Par
|
| Annual yield | 7 1/8%
|
| First call date: | Nov. 23, 2028
|
| First step-up: | Swaps plus 4.322% after Nov. 23, 2028
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 23
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Fitch: BB+
|
| Listing: | Global Exchange Market (Irish Stock Exchange)
|
| Price talk: | 7¼% area
|
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