not life grand? now it would become almost “flattering” for a country or company debt, and even POWER debt, the fact that markets are committed against them by granting a loan or acquiring bonds are considered a sign of good health. In any case, the way that France Telecom – href href=”http://www.orange.com/fr_FR/finance/financement/info-dette/”> crumbling yet there is little under the weight of the debt – presents its new borrowing transaction.
The operator has in effect said Friday in a statement it had signed with 28 international banks a syndicated loan of EUR 6 billion in five years, saying it was a refinancing of existing credit line.
“This operation s’nscrit through prudent management of the Group’s liquidity and extends the maturity of the principal line of credit existing non-derived from June 2012 to January 2016 while obtaining competitive terms, including an initial margin of 0.40% per year “said the group also Telecom.
The amount of this line was reduced compared to the one signed in 2005 for $ 8 billion, thereby taking account of debt repayment made in recent years. Nevertheless remains that amount of debt is at least consistent for a bit France Telecom happen to make us forget ….
The transaction was well oversubscribed also specifies the operator, so welcoming “ the vast market confidence towards France Telecom “.
Remember also that on 7 September, the group maximizes its debt through three major transactions: first, the early repayment of $ 3.37 billion face amount of bonds issued at the rate 7.75% due March 1, 2011 through the exercise of a prepayment option, but also the investment in the United States a bond of $ 750 m to 5 years with a coupon of 2.125% and the placement of a bond of 500 m € to 12 years with a coupon of 3.375%.
“These three transactions allow France Telecom to take a great market window to optimize its debt by paying in advance $ 3.37 billion of bonds maturing in March 2011 and re- emit the equivalent of about 1.1 billion € of long-term debt in two simultaneous transactions, to historically low levels coupons for corporate bonds “so stated the operator.
Sources: AFP, France Telecom
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