France Telecom completes three transactions to 'optimize' debt

By Lisa Kerner

Charlotte, N.C., Sept. 8 - France Telecom SA said it seized "an excellent market window" by completing a three-step process to optimize its debt.

According to a company news release, France Telecom completed on Tuesday:

• The early redemption of $3.37 billion outstanding nominal amount of 7.75% notes due March 1, 2011 through the exercise of a make-whole call option;

• The placement of $750 million of 2.125% five-year notes; and

• A €500 million offering of 3.375% 12-year bonds.

France Telecom reissued long-term debt of approximately €1.1 billion equivalent at "historically low coupon levels for corporate bonds," the release said.

The balance of the 7.75% notes redemption is being funded using cash on hand.

France Telecom is a Paris-based telecommunications company.

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