By Wendy Van Sickle
Columbus, Ohio, March 6 – Telefonica, SA announced pricing of a €1.1 billion issue of Telefonica Europe BV 5.7522% green deeply subordinated guaranteed fixed-rate reset securities (Ba2/BB/BB+) on Wednesday at par, according to a 6-K filing with the Securities and Exchange Commission and a market source.
Initial yield talk started in the 6¼% area.
The securities are non-callable for 8.1 years. There is a make-whole call option. The notes will be callable at par from Jan. 15, 2032 to April 15, 2032 then on interest payment dates going forward.
The notes will bear interest at the fixed 5.7522% rate until April 15, 2032 when the rate will transition to the eight-year swap rate plus a margin of 312.1 basis points until April 15, 2034, stepping up to 337.1 bps until April 15, 2052 when it will step up again to 412.1 bps.
BNP Paribas (billing and delivery), Banco Sabadell, Barclays, CaixaBank, Crédit Agricole CIB, Mizuho, Morgan Stanley, Natixis, SMBC and UniCredit were the joint bookrunners.
Orders were above €3 billion.
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.
Telefonica is a Madrid-based telecom.
| Issuer: | Telefonica Europe BV
|
| Guarantor: | Telefonica, SA
|
| Amount: | €1.1 billion
|
| Issue: | Green deeply subordinated guaranteed fixed-rate reset securities
|
| Maturity: | Perpetual
|
| Bookrunners: | BNP Paribas (billing and delivery), Banco Sabadell, Barclays, CaixaBank, Credit Agricole CIB, Mizuho, Morgan Stanley, Natixis, SMBC and UniCredit
|
| Coupon: | 5.7522% initially, swap rate plus 312.1 bps starting April 15, 2032, then swap rate plus 337.1 bps starting April 15, 2034, then swap rate plus 412.1 bps starting April 15, 2052
|
| Price: | Par
|
| Yield: | 5¾%
|
| Call features: | Make-whole call initially; par call from Jan. 15, 2032 to April 15, 2032; par call on any interest payment date thereafter
|
| Trade date: | March 6
|
| Settlement date: | March 15
|
| Ratings: | Moody’s: Ba2
|
| S&P: BB
|
| Fitch: BB+
|
| Distribution: | Regulation S
|
| Initial talk: | 6¼% area for yield
|
| ISIN: | XS2755535577
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
