Telia Company issued a € 500 million bond in a 10-year transaction maturing in November 2030 under its existing € 12 billion Euro Medium Term Note (EMTN) program.
The Telia company said it would use part of the proceeds to refinance senior debt. The company exploits the debt market to restructure and repay the maturity profile as part of its long-term funding strategy.
The bond’s re-offer yield was set at 0.197% per annum, which is equivalent to mid-swaps +45 basis points and a coupon of 0.125%.
On February 4, 2020, Telia Company, as the largest telecommunications company in the Nordic countries, issued a € 500 million green bond. The new hybrid bond has a maturity of 61.25 years with the first reset date after 6.25 years. The coupon is 1.375% and the yield on the re-offer has been set at 1.50%.
Telia Company’s net debt was SEK 80.309 billion at the end of the third quarter compared to SEK 83.789 billion at the end of the second quarter of 2020. The ratio of net debt to adjusted EBITDA was 2.58x. Bonnier Broadcasting’s net debt to adjusted EBITDA ratio, including 12-month adjusted EBITDA, was 2.5x.
The company Telia said earlier that 2020 was affected by higher repayments related to matured debt, while 2019 was affected by the acquisition of Turkcell’s 41.45% stake in Fintur.
Long-term borrowings increased to 105,872 million Swedish kronor (99,899) mainly due to the bonds issued. Short-term borrowings decreased to SEK 9,449 million (19,779) mainly due to matured debt and the partial repayment of the loan under the revolving credit facility.
“We have identified an opportunity at the end of the year to issue a 10-year bond on the Euro Debt Capital market at these attractive levels,” said Agneta Wallmark, Vice President and Head of Group Treasury at Telia Company.
“Due to strong demand from high quality investors, very tight pricing was possible, and the coupon is the lowest ever for a Telia Benchmark senior bond,” said Agneta Wallmark.
A public tender offer aimed at buying up to 300 million euros of bonds maturing 2021-2024 was also announced. The Tender Offer is part of the permanent proactive management of the company’s balance sheet.
The Joint Bookrunners appointed by Telia Company for this transaction were Barclays, BNP Paribas, Credit Agricole and Nordea.