Renta 4 | Telefónica has announced the result of its offer to buyback 2 hybrid bonds launched on November 14th. The first one, with a nominal value of 1 billion euros, a coupon of 5.5% and perpetual maturity, purchase price at Par and with 676,4 million euros of nominal value in circulation, has been accepted by investors with an aggregated nominal amount of 547,4 million, or 81% of the total.
The second one, with a nominal value of 1.250 billion euros, a coupon of 5.7% and also with perpetual maturity, purchase price with a discount, at 98.2% of the nominal and with 823.6 million euros of nominal value in circulation, has been accepted by investors with an aggregated nominal amount of 73,6 million, or 8.9% of the total.
In total, Telefónica will repurchase 621 million euros of nominal value of the bonds. And we recall that the Spanish telco placed a 750 million euros green hybrid bond, with a higher financial cost. The bond had a coupon of 7.125% and a call option exercisable between August and November 2028.
Valuation: The acceptance result was lower than that of the issue carried out to replace the repurchase, although we believe it is within the predicted levels. Telefónica is currently less active in refinancings. This is something which we think is favourable taking into account the increase in financing costs. We do not expect a significant impact on the stock price. OVERWEIGHT. T.P. 5,10 euros/share.
