Bloomberg News

Vodafone Raises $6 Billion in Five-Part Bond Offering in U.S.

February 11, 2013

Vodafone Group Plc sold $6 billion of bonds in a five-part transaction in the U.S., the largest dollar-denominated issue in more than three weeks.

The mobile telephone company’s $900 million of 0.9 percent, three-year fixed-rate debt yields 55 basis points more than similar-maturity Treasuries and $700 million of three-year floating-rate bonds yield 38.5 basis points more than the three- month London interbank offered rate, according to data compiled by Bloomberg. Its $1.4 billion of 1.5 percent, five-year notes have a relative yield of 75 basis points, $1.6 billion of 2.95 percent, 10-year securities have a spread of 105 basis points and $1.4 billion of 4.375 percent, 30-year debt has a spread of 130 basis points.

Vodafone last sold debt in September, issuing $1 billion each of 1.25 percent, five-year debentures at a spread of 62.5 basis points and 2.5 percent, 10-year debentures at 87.5 basis points, Bloomberg data show. The bonds due September 2022 traded at 97.8 cents on the dollar to yield 2.77 percent on Feb. 7, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

The new bonds from the Newbury, England-based company are expected to be rated A3 by Moody’s Investors Service and proceeds will be used for general corporate purposes, Bloomberg data show.

Barclays Plc, HSBC Holdings Plc, JPMorgan Chase & Co., Mitsubishi UFJ Financial Group Inc. and Morgan Stanley managed the offering, the data show.

The sale is the largest offering in the U.S. since JPMorgan Chase & Co. issued $6 billion of bonds in three parts on Jan. 17, the data show.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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