Telefonica plans five-year, cash-settled convertible bond offering

By Rebecca Melvin

New York, March 2 – Telefonica Participaciones SAU plans to price an offering of five-year, cash-settled convertible bonds guaranteed by Telefonica SA, according to a news release on Wednesday.

The bonds, which have a €100,000 par, are being sold via joint bookrunners BNP Paribas, Citigroup Global Markets Ltd. and Goldman Sachs International.

Concurrently with the issue of bonds, Telefonica will purchase cash-settled call options on Telefonica shares from one or several financial institutions to hedge the issuer.

Proceeds will be used for general corporate purposes and for the purchase of the cash-settled call options.

The company plans to seek a listing of the notes on a secondary market.

Telefonica is a Madrid, Spain-based broadband and telecommunications provider.

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