Telefonica gives results of tender offers for two notes due 2023

By Marisa Wong

Los Angeles, Nov. 22 – Telefonica Europe BV announced the final results of its Nov. 14 invitations to holders of its €1 billion undated 5.5-year non-call deeply subordinated guaranteed fixed-rate reset securities (ISIN: XS1731823255) with a first call date of March 7, 2023 and €1.25 billion undated 5.7-year non-call deeply subordinated guaranteed fixed-rate reset securities (ISIN: XS1795406575) with a first call date of Sept. 4, 2023, both guaranteed by Telefonica, SA, to tender their notes for purchase for cash.

The company has accepted for purchase the following notes:

• €547.4 million of the €676.4 million outstanding March 2023 notes at €100,000 per €100,000 principal amount; and

• €73.6 million of the €823.6 million outstanding September 2023 notes with a 29.411% proration factor applied at €98,250 per €100,000 principal amount.

The March 2023 series has priority in acceptance over the September 2023 series.

The issuer had said it would accept any and all tendered March 2023 securities and up to a maximum amount of the September 2023 securities.

Specifically, the cap on the September 2023 series is equal to the difference between (i) the aggregate principal amount of new notes issued under a concurrent offering and (ii) the aggregate principal amount outstanding of the March 2023 notes prior to the tender offer.

The issuer previously announced an issue of new euro-denominated undated six-year non-call deeply subordinated guaranteed fixed-rate reset securities guaranteed by Telefonica. The tender offers are conditioned on the issuance of the new notes.

The tender offers expired at 11 a.m. ET on Nov. 21.

Settlement is slated for Nov. 24.

The company had said the purpose of the offers is, among other things, to proactively manage its layer of hybrid capital. The offers also give holders the opportunity to switch into the new notes ahead of upcoming first call dates.

Telefonica is a Madrid-based telecom.

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