KPN issues 1.56 bln euros of hybrid bonds

BRUSSELS, March 7 Thu Mar 7, 2013 11:52am EST

BRUSSELS, March 7 (Reuters) - Dutch telecoms company KPN NV said on Thursday it had issued hybrid bonds for a total of 1.56 billion euros, part of a 4 billion euro equity hike to avoid credit rating downgrades.

The company said in a statement it had priced a dual tranche hybrid bond transaction, consisting of a 1.1 billion euro tranche with a 6.125 percent coupon and a 400 million pound tranche with a 6.875 percent coupon.

The hybrid bond issues is part of the capital raise KPN announced on Feb. 20, which consists of a 3 billion euro rights offering and up to 2 billion euros of hybrid capital instruments that are expected to receive 50 percent equity recognition.

Deutsche Bank, Goldman Sachs and J.P. Morgan acted as joint structuring advisors and together with BNP Paribas and The Royal Bank of Scotland as joint bookrunners. Barclays and Société Générale acted as co-lead managers.