Vodafone launch up to €2 billion debt tender, new bond sales

Vodafone is looking to buy back dollar and sterling denominated notes with maturities as far out as 2059, to pro-actively manage its outstanding debt portfolio

Vodafone Group Plc launched an up to €2 billion multi-currency debt tender on Monday while simultaneously releasing initial terms for a multi-tranche offering of euro and sterling benchmark bonds.

The company and its subsidiary Vodafone International Financing DAC are looking to raise the three benchmark bonds in the single currency and one sterling-denominated benchmark note, according to a person familiar with the matter who asked not to be identified. The debt sale comes as Vodafone looks to repurchase existing debt securities denominated in British dollars and British pounds through concurrent tender offers.

The euro-denominated tranches include a four-year note with initial price thoughts from 95 to 100 basis points over mid-swaps, an eight-year note at around 130 basis points over, and a 13-year note at 155 to 160 basis points over, said the person who asked not to be identified. The British pound-denominated tranche is a 25-year note offered at around 140 basis points over UK gilts.

Vodafone is looking to buy back dollar and sterling denominated notes with maturities as far out as 2059, to pro-actively manage its outstanding debt portfolio, according to a person familiar with the matter. The tender offer is expected to conclude on July 29 at 5 p.m. EDT and an early settlement date expected on July 17.

Bookrunners include Bank of America Corp. for all four tranches, with BNP Paribas SA, Deutsche Bank AG, and Banco Santander for the euro-denominated notes, while NatWest Markets and RBC Capital Markets are involved in the British pound-denominated tranche. The bonds are expected to be rated Baa2 by Moody’s Ratings, BBB by S&P Global Ratings, and BBB by Fitch Ratings.