By Abigail W. Adams
Portland, Me., March 5 – Telefonica Europe BV priced €1.3 billion perpetual hybrid securities at par to yield 4 3/8% on Tuesday, according to a market source.
BNP Paribas will bill and deliver. Banca IMI, CaixaBank, Citigroup, NatWest Markets, MUFG, Societe Generale and Unicredit were also joint bookrunners for the Regulation S offering in bearer form.
The securities have six years of call protection and are then callable on every interest payment date thereafter.
The notes will yield 4 3/8% until year six when it will reset based on mid-swaps and the initial margin of mid-swaps plus 410.7, including step ups.
The first step-up will be on March 14, 2029 at 25 bps and the second step-date will be March 14, 2045 at 75 bps.
The notes will be listed for trade on the Irish stock exchange.
Proceeds will be used for general corporate purposes, including the debt and hybrid securities refinancing and the preservation of a liquidity cushion.
Telefonica Europe is a Slough, U.K.-based broadband and telecommunications company.
| Issuer: | Telefonica Europe BV
|
| Issue: | Subordinated hybrid bonds
|
| Amount: | €1.3 billion
|
| Maturity: | Perpetual
|
| Bookrunners: | BNP Paribas (bill and deliver), Banca IMI, CaixaBank, Citigroup, NatWest Markets, MUFG, Societe Generale and Unicredit
|
| Coupon: | 4 3/8% until year six when it will reset to mid-swaps plus initial margin of mid-swaps plus 410.7 bps with step-up of 25 bps on March 14, 2029 and step-up of 75 bp on March 14, 2045
|
| Price: | Par
|
| Call: | March 14, 2025 and every interest payment date thereafter
|
| Pricing date: | March 5
|
| Distribution: | Regulation S
|
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