TeleCel tightens price on new eight-year notes

TeleCel tightens price on new eight-year notes

Bonds Debt Capital Markets Corporate & Sovereign Strategy Fixed Income Telecoms Paraguay Europe

Paraguay's TeleCel has returned to the cross-border bond market after more than six years and raised $300m from the sale of eight-year notes, LatinFinance has heard.

The mobile phone company, a subsidiary of Millicom, priced the bonds at par to yield 5.875%, some 25bp below the initial price talk in the low 6% area, said a banker on the deal. The bookrunners were BBVA, BNP Paribas, Citi and Itaú BBA. 

"This was a very good trade," the banker said, pointing out that the order books closed slightly below the peak of $1.5bn. "This is a pretty stable business with the largest market share in Paraguay."

Millicom benefited from strong demand when it sold $750m in 10-year notes in mid-March, and that deal boosted investor enthusiasm for TeleCel's return to the international bond market, the banker said.

"Millicom priced recently, and there was a very strong reception. Plus, they got a ratings upgrade [on Wednesday]," he said.

The Luxembourg-based mobile phone company, which operates the Tigo brand in South America, Central America and Africa, had planned to sell $500m in bonds, but it increased the size of the offer as order books were four times oversubscribed. Millicom's 2029 notes traded at 6.1% on Thursday, the banker said.

TeleCel last sold $300m in 10-year bonds at 6.75% in December 2012.

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