Clifford Chance advised Telefónica on the issue of bonds mandatorily convertible into and/or exchangeable for shares in the amount of 1.5 billion euros, issued through the subsidiary Telefónica Participaciones S.A.U.

With a face value of 100,000 euros, these bonds will be issued at 100% of their value, maturing in three years. They will accrue a fixed annual interest rate of 4.9%, payable annually in arrears.
The issue, expected to close on 25 September, is targeted exclusively at qualified investors. The funds that Telefónica obtains from this transaction will be allocated for the operator's corporate purposes, which include financing the purchase of the mobile telecommunications company E-Plus.

The multi-jurisdiction Clifford Chance team that advised on this transaction under Spanish and English law, was led by Corporate partner Javier García de Enterría and lawyers in this same department, Javier Hermosilla and Enif Lobelos; the English law team was led by partner Stewart Dunlop and senior associates Paul Deakins and Yara Fadayel, from the Capital Markets team in London.

http://www.cliffordchance.com/news/news/2014/09/clifford-chance-advises…