Telecom Receives $ 400 Million in International Markets to Refinance Liabilities

The issuance of marketable bonds, initially forecast at US $ 300 million and expandable to US $ 500 million, has resulted in an oversubscription about seven times higher in the international market, as 50% of subscribers came from the United States, 30% from Europe, 7% from Asia and 5% from Latin America, said the company in a statement.

Funds raised, with an annual interest rate of 8.00% and a payment term of seven years, they will be used to extend and modify the maturity profile of Telecom Argentina's financial debt.

They plan to use up to US $ 250 million for the optional pre-cancellation of their "A" clbad notes maturing in 2021.

"The success of this new investment is based on the credit quality and financial strength of Telecom and also in improving Argentina's economic and financial prospects, which allow long-term international investors to return to the country, "the company said.

The transaction included the placement of a new series of fixed-rate marketable bonds as part of Telecom Argentina's proposed global debt offering for a maximum aggregate face amount of US $ 3,000 million.

Locally the placement was in charge of the Industrial and Commercial Bank of China (ICBC)Citibank, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC and Santander Investment Securities Inc.

Citibank, which is responsible for international placement with other entities, has specified that the marketable bond would yield 8.25% per annum and that the proceeds of the offering would be used by the company to finance the redemption of debt. , 5% expiring in June 2021.

Telecom It has become the fourth Argentine company to seek financing in the market over the past two weeks, alongside YPF, Pampa Energía and Cresud.