Telia takes in tenders for £153.9 million of 4.375% notes at 114.604

By Susanna Moon

Chicago, June 8 – Telia Co. AB, formerly TeliaSonera AB, said investors had tendered £153,901,000 of its outstanding £400 million 4.375% notes due Dec. 5, 2042.

The purchase price will be 114.604% of par, with pricing set at 7 a.m. ET on June 8 using the 4.5% U.K. Treasury due Dec. 7, 2042 plus a spread of 140 basis points for a benchmark rate of 2.087% and a tender yield of 3.517%, according to a company announcement.

The issuer also will pay accrued interest to but excluding the settlement date.

The tender offer ran from May 31 until 11 a.m. ET on June 7.

After settlement on June 10, there will be £246,099,000 of the notes left outstanding.

The offer is part of the issuer’s “ongoing balance sheet management aiming to proactively optimize its liability structure in the context of an evolving business and financial profile,” the company said.

The issuer said it plans to use some proceeds from its Ncell divestment to reduce outstanding capital markets debt.

Barclays Bank plc (+44 20 3134 8515 or eu.lm@barclays.com) and Merrill Lynch International (+44 20 7996 5420 or DG.LM_EMEA@baml.com) are the dealer managers. The tender agent is Lucid Issuer Services Ltd. (Victor Parzyjagla, +44 20 7704 0880 or telia@lucid-is.com).

Telia is a Stockholm-based company that provides network access and telecommunication services.

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