Telefonica Deutschland Holding AG

Capital/Financing Update • Nov 15, 2013

News Details

Corporate | 15 November 2013 16:54

Telefónica Deutschland Holding AG: Telefónica Deutschland successfully places EUR600 million debut benchmark bond

Telefónica Deutschland Holding AG / Key word(s): Bond

15.11.2013 / 16:54

---

15 November 2013

Telefónica Deutschland successfully places EUR600 million debut benchmark bond

– Very successful debut on the international bond markets

– High demand led to more than 3x oversubscribed orderbook

– Deal volume upsized to EUR600 million

MUNICH. Today, Telefónica Deutschland has successfully placed senior unsecured notes with a total principal volume of EUR600 million due on November 22, 2018. The fixed rate bonds, issued by O 2 Telefónica Deutschland Finanzierungs GmbH and guaranteed by Telefónica Deutschland Holding AG, pay a 1.875 percent coupon and were issued at a price of 99.162 percent, corresponding to an issue spread of 98 bps over the 5 year Euro midswap rate. The bonds carry a denomination of EUR1,000 and were issued based on a bond security prospectus.

The transaction was highly oversubscribed, benefitting from strong demand from institutional as well as private investors, following a credit investor update call on the previous day. On that basis and a yield of 2.053 percent, Telefónica Deutschland decided to upsize the transaction moderately to EUR600 million from an initial EUR500 million benchmark target. In terms of region, allocation was driven by high-quality asset managers from Germany and the UK with each taking approximately 30 percent of the allocation. The net proceeds of the bonds will be used for general corporate purposes. The net debt level of the company will not increase after the issuance of the bond.

‘This offering is a great success for us’, says Rachel Empey, CFO of Telefónica Deutschland. ‘The extraordinary demand demonstrates the confidence among investors in Telefónica Deutschland’s strategy.’

The bonds will be listed for trading in the Regulated Market of the Luxembourg Stock Exchange under the ISIN code XS0912992160 as of November 22, 2013. The prospectus is available on the website of Telefónica Deutschland.

Bank of America Merrill Lynch, BayernLB, Commerzbank and UBS Investment Bank acted as joint bookrunners for the transaction.

Further information:

Telefónica Deutschland

Investor Relations

Georg-Brauchle-Ring 23-25

D-80992 Munich

t +49 (0)89 2442-1010

f +49 (0)89 2442-2000

e ir-deutschland@telefonica.com

End of Corporate News

---

15.11.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de

---

Language:	English
Company:	Telefónica Deutschland Holding AG
	Georg-Brauchle-Ring 23-25
	80992 München
	Germany
Phone:	+49 (0)89 24 42 0
Internet:	www.telefonica.de
ISIN:	DE000A1J5RX9
WKN:	A1J5RX
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
	TecDAX

End of News	DGAP News-Service

- - -
240259  15.11.2013