By Cristal Cody
Tupelo, Miss., March 28 – Vodafone Group plc (Baa2/BBB+/BBB+) priced $2 billion of capital securities due April 4, 2079 (Ba1/BBB-/BBB-) on Thursday at par to yield 7%, or mid-swaps plus 462.3 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Price guidance was in the 7.125% area.
The rate on the notes will reset on the first reset date of April 4, 2029 at mid-swaps plus 487.3 bps. The rate will reset on or after April 4, 2049 at mid-swaps plus 562.3 bps.
BofA Merrill Lynch and RBC Capital Markets LLC were the global coordinators. BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and Standard Chartered Bank were bookrunners.
The notes will be callable at the first call date to the first reset date.
The deal includes a 101% change-of-control put.
The offering is registered with the SEC.
Proceeds will be used for general corporate purposes, including to finance the company’s acquisition of Liberty Global plc’s operations in Germany, the Czech Republic, Hungary and Romania.
The telecommunications company is based in London.
| Issuer: | Vodafone Group plc
|
| Amount: | $2 billion
|
| Maturity: | April 4, 2079
|
| Description: | Capital securities
|
| Global coordinators: | BofA Merrill Lynch and RBC Capital Markets LLC
|
| Bookrunners: | BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and Standard Chartered Bank
|
| Coupon: | 7%; resets April 4, 2029 at mid-swaps plus 487.3 bps and on or after April 4, 2049 at mid-swaps plus 562.3 bps
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | Mid-swaps plus 462.3 bps
|
| Call features: | Jan. 4, 2029 at par
|
| Change-of-control put: | 101%
|
| Trade date: | March 28
|
| Settlement date: | April 4
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | 7.125% area; initial talk at 7.5% area
|
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