Telefonica to issue dollar-denominated debt

MADRID, April 17 Wed Apr 17, 2013 1:29pm EDT

MADRID, April 17 (Reuters) - Spanish telecoms company Telefonica plans to issue dollar-denominated debt, according to a preliminary prospectus filed to the U.S. Securities and Exchange Commission on Wednesday.

Telefonica will issue five and ten-year notes and the price is likely to lie between 200 and 300 basis points over mid-swaps, according to Thomson Reuters news and markets analysis service IFR Markets.

Madrid-based Telefonica did not specify in the statement the amount of debt it planned to issue or interest rates on the debt. A spokesman for Telefonica declined to comment on the amount of debt to be sold.

The lead bookrunners are BNP Paribas, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley and Societe Generale.

Telefonica is trying to cut its debt of around 50 billion euros ($65.21 billion) through asset sales and other cash-generating measures. Net debt stood at 2.36 times operating income before depreciation and amortisation at the end of 2012.

It has benefited from improved sentiment in the debt markets towards countries at the heart of the euro zone sovereign debt crisis.

The company has taken advantage of friendlier market conditions with issues such as a 1.5 billion euro ten-year bond in January.

The company has said it will end 2013 with debt of under 47 billion euros compared to over 51 billion euros at the end of last year. ($1 = 0.7668 euros) (Reporting by Clare Kane and Jose Elias Rodriguez; Editing by Tom Pfeiffer)