Vodafone Raises $2 Billion in Second 2012 Dollar-Bond Offering
Stock Chart for Vodafone Group PLC (VOD)
Vodafone Group Plc (VOD), Europe’s largest mobile-phone company, sold $2 billion of debt at its lowest coupons on record for five- and 10-year bonds in the operator’s second offering in the U.S. this year.
The voice and data communications provider issued $1 billion each of 1.25 percent, five-year securities to yield 62.5 basis points more than similar-maturity Treasuries and 2.5 percent, 10-year bonds at a relative yield of 87.5 basis points, according to data compiled by Bloomberg. The coupons were the company’s least for similar-maturity debt, Bloomberg data show.
Vodafone previously sold dollar debt in March, issuing $1 billion of 1.625 percent, five-year debentures to yield 80 basis points more than benchmarks, according to data compiled by Bloomberg. The bonds traded at 102 cents on the dollar to yield 1.18 percent on Sept. 17, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
The new bonds may be rated A3, the fourth-lowest level of investment grade, by Moody’s Investors Service, according to a person familiar with the transaction, who asked not to be identified citing lack of authorization to speak publicly. Proceeds will be used for general corporate purposes by the Newbury, England-based company.
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