Bloomberg News

Polkomtel Said to Plan First Euro Junk Bond Sale in 2 Months

January 09, 2012

(Adds last issue in second paragraph.)

Jan. 6 (Bloomberg) -- Polkomtel SA, the second-largest mobile phone company in Poland, plans to sell the equivalent of 900 million euros ($1.1 billion) of bonds in what would be Europe’s first high-yield corporate issue in two months.

The company will issue eight-year bonds in euros, dollars and zloty that are callable after four years, a banker with knowledge of the deal said. The sale would be the first euro- denominated junk offering from a non-financial company since HeidelbergCement AG added 200 million euros to its 9.5 percent bonds due 2018 on Nov. 9, according to data compiled by Bloomberg.

The money raised will repay a bridge loan used in the acquisition of Polkomtel, which billionaire Zygmunt Solorz-Zak agreed to take over in June. Deutsche Bank AG, Credit Agricole SA, Royal Bank of Scotland Group Plc and Societe Generale SA will manage the fundraising, with investor meetings starting in the U.S. on Jan. 9, said the banker, who declined to be identified before the terms are set.

The bonds, which are yet to be rated, will be issued by Eileme 2 AB. Junk, or speculative-grade, bonds are rated below Baa3 by Moody’s Investors Service and BBB- by Standard & Poor’s.

--Editor: Paul Armstrong

To contact the reporter on this story: Ben Martin in London at

To contact the editor responsible for this story: Paul Armstrong at

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