Cellnex talks €500 million eight-year convertibles to yield 1.25% to 2%, up 70%

By Abigail W. Adams

Portland, Me., Jan. 8 – Cellnex Telecom SA plans to price €500 million in eight-year convertible bonds after the market close on Monday with price talk for a coupon of 1.25% to 2%, up 70%.

The bonds will carry an initial conversion premium of 70% with the initial conversion price to be determined after market close.

The bonds are callable on or after July 18 2022 subject to a 130% hurdle or if more than 85% of the principal amount has been converted or redeemed. There is takeover protection, according to a Spanish National Securities Market Commission filing.

Morgan Stanley & Co. International plc, BNP Paribas, and Goldman Sachs International are acting as global coordinators and joint bookrunners for the offering.

Proceeds from the offering will be used for general corporate purposes.

The offering is Cellnex’s first issuance of convertible bonds.

The bonds will be issued at a significantly reduced rate from its current average borrowing costs and with a “substantial premium,” according to the filing.

The bonds will be traded on the Open Market of the Frankfurt Stock Exchange.

Cellnex is a Barcelona, Spain-based operator of wireless telecommunications and broadcasting infrastructures in Europe.

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