Telefonica Europe accepts €242.4 million of tendered notes

By Mary-Katherine Stinson

Lexington, Ky., Sept. 6 – Telefonica Europe BV gave results of its cash tender offer for its outstanding undated 10-year non-call deeply subordinated guaranteed fixed-rate reset securities (ISIN: XS1050461034) guaranteed by Telefonica, SA, according to a 6-K filing with the Securities and Exchange Commission.

The company will accept and purchase all €242.4 million tendered notes, subject to the settlement of a new issue.

Telefonica priced €750 million of green subordinated securities on Aug. 30. Settlement is planned for Sept. 7.

After settlement and cancelation of the tendered notes, the issuer stated it intends to issue a clean-up call for any remaining outstanding notes, as over 80% of the principal will have been repurchased and canceled.

As previously reported, of the €1 billion original principal amount, €387.6 million is outstanding which was also previously announced as the maximum acceptance amount.

The current coupon for the notes is 5 7/8%.

The issuer was offering to purchase the securities at €101,100 per €100,000 principal amount.

The company will also pay accrued interest.

Tender instructions could not be withdrawn except in limited circumstances.

The offer expired at 11 a.m. ET on Sept. 5.

Settlement is expected to be on Sept. 8.

Holders who participated in the tender offer and wished to subscribe for the new notes were given the opportunity for priority in allocation of the new notes.

The company said the purpose of the offer was, among other things, to proactively manage its layer of hybrid capital. The offer also gave holders an opportunity to switch into the new notes ahead of the upcoming first call date for the existing notes, which is on March 31, 2024.

Telefonica is a Madrid-based telecom.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.