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France Telecom raises $1.4bn in bond sale
08 September 2010
France Telecom has sold $750m of global notes and €500m of euro bonds to pay back debts due next year
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France Telecom
Orange
bonds
Bank of America
Merrill Lynch
Citigroup
HSBC
Morgan Stanley
France Telecom is raising about $1.4 billion in a sale of euro and dollar bonds to pay back debt maturing in 2011. The company sold $750 million of five-year global notes with a coupon rate of 2.215% and €500 million of 12-year euro bonds.
The Paris-based company, which has $3.5 billion of bonds outstanding, will use the proceeds to redeem its 7.75% dollar-denominated notes due 2011. Bank of America Merrill Lynch, Citigroup, HSBC and Morgan Stanley were the joint book-running managers.
The phone company, which operates under the Orange brand in most countries, has raised $2.5 billion in a sale of five and 10-year notes in the US market in June last year. The new dollar bonds will be priced to yield 82 basis points more than similar-maturity Treasuries. GTB