Telefonica begins tender offer for £100 million of 5.888% notes 2014

By Susanna Moon

Chicago, March 14 - Telefonica Emisiones SAU and Telefonica SA began a tender offer for up to £100 million of their £500 million 5.888% notes due Jan. 31, 2014.

There is £446,250,000 of the bonds outstanding, considering the notes held by Telefonica and the guarantor, according to a company press release.

This offer is part of the company's plans to actively manage its debt maturities as well as manage its liquidity in an efficient manner, the release noted.

Pricing will be set at 5 a.m. ET on March 22 using benchmark yield on the 5% U.K. Treasury gilt due September 2014 plus 125 basis points.

The company also will pay accrued interest up to but excluding the settlement date of March 26.

The offer will end at 11 a.m. ET on March 21.

If the offer is oversubscribed, the notes will be purchased on a prorated basis.

Holders must tender notes in denominations of at least £50,000.

Banco Bilbao Vizcaya Argentaria, SA (attn: liability management, +44 207 648 7516 / +44 207 397 6125 or email: liabilitymanagement@bbva.com), Barclays Bank plc (attn.: liability management group, +44 207 773 8575 or email: eu.lm@barclays.com) and Citigroup Global Markets Ltd. (attn: liability management group, +44 207 986 8969 or email: liabilitymanagement.europe@citi.com) are the dealer managers, and Lucid Issuer Services Ltd. (+44 0 20 7704 0880, attn: David Shilson / Thomas Choquet, or email: telefonica@lucid-is.com) is the tender agent.

Barclays tender offer

Telefonica noted in the release that it was aware that Barclays Bank plc plans a partial cash tender offer for the following notes issued by Telefonica and guaranteed by Telefonica SA:

• €1.4 billon 3.406% guaranteed instruments due March 24, 2015;

• €1 billion 4.967% guaranteed instruments due Feb. 3, 2016; and

• €1.5 billion 5.496% guaranteed instruments due April 1, 2016.

Banco Bilbao Vizcaya Argentaria, SA, Barclays Bank plc and Citigroup Global Markets Ltd. are the dealer managers.

Telefonica is a telecommunications company is based in Madrid.

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