Telecom Argentina SA tapped international debt markets following its acquisition of Telefónica SA’s local unit, a deal that has stoked fierce opposition from President Javier Milei’s government.
The company sold US$800 million of bonds due in 2033, according to people familiar with the matter. The notes priced at 98.862 cents on the dollar with a 9.5 percent yield, the people added, asking not to be identified because they are not authorised to speak publicly.
The cash proceeds will be used to pay some of the US$1.17 billion in loans the company took out to finance the purchase of the Spanish carrier’s Argentina unit. However, Milei’s team has scrutinised the purchase, prompting regulators to demand Telecom refrain from carrying out any type of legal, corporate or commercial act that implies consolidation with Telefónica for up to six months.
Authorities and competitors have argued that the takeover may be a breach of anti-monopoly rules. Milei said in late February that the merger would leave Telecom with about 70 percent of Argentina’s telecommunications industry.
The company hired Deutsche Bank Securities Inc, Banco Bilbao Vizcaya Argentaria SA, Citigroup Inc, JPMorgan Chase & Co and Banco Santander SA to arrange the bond sale.
Telecom’s forray into capital markets follows a string of dollar-debt offerings by Argentine companies on the back of optimism over South America’s second-largest economy, with traders cheering Milei’s moves to lift a series of currency-market regulations as part of a US$20-billion programme with the International Monetary Fund.
On Thursday, Pluspetrol SA launched a US$450-million debt sale, its first one abroad, following its acquisition of Exxon Mobil Corp’s assets in the country. Additional details suggests that the oil driller’s notes will carry a yield of around 8.75 percent, down from earlier pricing guidance of 8.875 percent.
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by Kevin Simauchi, Bloomberg
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