(Adds size of issue and price guidance)
MADRID, April 17 Spanish telecoms company
Telefonica launched a $2 billion dollar-denominated
bond issue on Wednesday, reported Thomson Reuters news and
markets analysis service IFR Markets.
Telefonica will issue $1.25 billion of five-year notes and
$750 million of 10-year notes, with a price guidance of 250 and
287 basis points over mid-swaps, respectively, IFR said.
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
toward 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 10-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
Tom Pfeiffer and Leslie Adler)