Ono raises its bond issue to 700 million to pay off its debt

The Spanish operator has successfully completed the issuance of 700 million euros in high-yield bonds in record time and with the full support of the markets, with 230 investors whose demand was 3.5 billion euros. As a result of the operation, Moody's has improved the operator's outlook from "stable" to "positive."

Ono has announced that it has successfully completed the issuance of 700 million euros in high-yield bonds in record time. The operation, which began on October 11 and started at 500 million euros, was raised by an additional 200 million euros due to the good reception received from institutional investors.

In this way, the operator has closed an operation aimed at canceling part of its bank debt in advance, which has had the full support of the markets, with 230 investors. The bond request was made for an amount of 3,500 million euros, finally closing at 700 million euros maturing in December 2018 and with an interest of 8.875%.

For Carlos Sagasta, general financial director of Ono, "in accordance with Ono's financial policy, debt maturities are being undertaken early and prudently. We are very satisfied and proud of the very favorable response we have obtained, which without a doubt shows us the great confidence of the market in the company. Likewise, we have fulfilled our commitments with the bank union nine months in advance of what was agreed, demonstrating that ONO is a well-managed company with a clear vision of the objectives for the coming years.”

The high-yield bonds have been issued by Nara Cable Funding Limited, with the aim of refinancing existing debt, not increasing Ono's leverage. The bonds become part of the existing syndicated loan, so they benefit from the current guarantees held by financial institutions.

Las agencias de rating Fitch, Moody’s y Standard & Poor’s han puesto un rating de BB- (Outlook estable), B2 (Outlook positivo) y B- (Outlook estable). Las tres agencias han estimado la emisión de forma muy positiva por la capacidad de Ono para acceder al mercado de capitales como para trabajar con anticipación sobre los vencimientos de deuda del año 2013. Como consecuencia de la operación, Moody’s ha mejorado el outlook del operador de “estable” a “positivo” debido al impacto que esta transacción tiene en la futura estabilidad del operador.

The coordinating banks of the transaction were: Deutsche Bank, BNPP, BofAML, Credit Agricole, Santander and Société Générale. The issuance of 700 million euros is part of Ono's comprehensive refinancing process, which seeks to extend the maturities of the debt and access a greater number of financing sources.