CMS again advises Telefónica Deutschland on successful placing of benchmark bond

Frankfurt/Main – On 5 July 2018, Telefónica Deutschland Holding AG successfully placed a senior unsecured bond worth EUR 600 million via O2 Telefónica Deutschland Finanzierungs GmbH. This is the third successful benchmark issue by Telefónica Deutschland, following its debut offering of EUR 600 million in November 2013 and a second bond amounting to EUR 500 million in February 2014.

As on previous occasions, a CMS team led by partners Philipp Melzer and Oliver Dreher advised Telefónica Deutschland on all legal aspects of the transaction. CMS regularly advises the group on capital market transactions. Examples include the company’s IPO in October 2012, the placement of two benchmark bonds (2013, 2014), a capital increase worth around EUR 3.6 billion (September 2014), a debut private placement through a combination of promissory note loans and registered bonds totalling EUR 300 million (April 2015) and most recently a blockchain-based promissory note issue in January 2018.

The bond issue, which is admitted to the regulated market in Luxembourg, matures on 5 July 2025 and is guaranteed by Telefónica Deutschland Holding AG. The fixed rate bonds pay a 1.75 per cent coupon and were issued at a price of 99.628 per cent, corresponding to an issue spread of 127 basis points over the seven-year euro mid-swap rate.

Telefónica Deutschland Holding AG, a subsidiary of Spanish telecommunications group Telefónica, S.A., has been listed on the Frankfurt Stock Exchange since 2012, and since 2013 on the TecDAX. With 49.4 million customer connections, the company is a leading integrated telecommunications provider. Telefónica Deutschland has more than 45.2 million customers in the mobile segment alone. In the 2017 financial year, the group had almost 9,300 employees and generated sales of EUR 7.3 billion.

CMS Germany

Philipp Melzer 
Oliver Dreher, both Lead Partners
Dr Orna von Fürstenberg, Senior Associate, all Banking & Finance

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