MADRID, April 17 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
The company has taken advantage of friendlier market
conditions with issues such as a 1.5 billion euro ten-year bond
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
($1 = 0.7668 euros)
(Reporting by Clare Kane and Jose Elias Rodriguez; Editing by