Turk Telekom newly priced notes edge higher; Venezuela crisis eyed

By Rebecca Melvin

New York, Feb. 22 – Turkey’s Turk Telekomunikasyon AS’s newly priced 6 7/8% notes traded slightly higher on Friday after the Ankara, Turkey-based telecom company priced $500 million of the six-year notes at 99.396 to yield 7%, or a yield spread of mid-swaps plus 440.4 basis points.

The new Turk Telekom notes were quoted at 99.75 bid, 100.25 offered.

They priced tight to guidance of 7 1/8% to 7¼% yield and initial price talk in the 7 3/8% yield area.

Order books at the time of guidance were in excess of $2 billion.

The week saw a firm secondary space, and heading into the weekend there was relative calm. But market players were watching Venezuela, where a political crisis was heating up, with expectations of a possible showdown to occur between President Nicolas Maduro and the U.S.-backed opposition leader Juan Guaido as soon as this weekend.

On Friday, Venezuela military forces fired on protesters along the border with Brazil, killing one woman and injuring 15 people, as protestors attempted to reopen the border, according to reports.

Maduro has closed the borders with Brazil and Colombia to prevent foreign aid from entering the country. He claims the humanitarian aid is being used as wedge in the battle to make him step down as president.

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