Telefonica launches any-and-all tender offer for 6¾%, 7 5/8% notes

By Sarah Lizee

Olympia, Wash., Jan. 27 – Telefonica SA subsidiary Telefonica Europe BV launched a tender offer for any and all of its £171.5 million 6¾% undated seven-year non-call deeply subordinated guaranteed fixed-rate reset securities (ISIN: XS0997326441) and its €292.7 million 7 5/8% undated eight-year non-call deeply subordinated guaranteed fixed-rate reset securities, according to an announcement.

Both series of notes are guaranteed by the parent.

The purchase price is £104,571 per £100,000 note for the 6¾% notes and €112,313 per €100,000 note for the 7 5/8% notes.

Holders will also receive accrued interest.

The offer will expire at 11 a.m. ET on Feb. 3. Settlement is expected for Feb. 6.

Telefonica said the purpose of the offer is, amongst other things, to proactively manage its hybrid capital.

The offers also provide noteholders with the opportunity to switch into new notes ahead of upcoming first call dates.

Telefonica intends to issue new euro-denominated undated 7.25-year non-call deeply subordinated guaranteed fixed-rate reset securities.

Whether the issuer will accept for purchase any notes tendered under the offer is subject to settlement of the new issue.

The first reset date for the 6¾% notes is Nov. 26, 2020, and the first reset date for the 7 5/8% notes is Sept. 18, 2021.

The telecommunications group is based in Madrid.

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