Global law firm White & Case LLP has advised Colombia Telecomunicaciones S.A. E.S.P ("ColTel"), a subsidiary of the Spanish telecom group Telefónica, on US law matters relating to a comprehensive liability management transaction with respect to its outstanding debt and hybrid securities in the international capital markets.
The liability management transaction (the "Transaction") included (i) a US$320 million senior unsecured term loan facility governed by New York law (the "Club Facility") and four mirror bilateral facilities governed by Colombian law (the "Bilateral Facilities") for an aggregate principal amount of COP$1,770,683 million, (ii) the redemption in full of ColTel’s US$500 million Subordinated Perpetual Notes (the "Hybrid Notes") with the proceeds from the Bilateral Facilities, (iii) the partial redemption of ColTel’s US$750 million 5.375% Senior Notes due 2022 (the "Old Notes") and (iv) the issuance of US$500 million principal amount of ColTel’s 4.950% unsecured notes pursuant to Rule 144A/Regulation S (the "New Notes"), the proceeds of which will be used to repay in full the remaining principal amount outstanding under ColTel’s Senior Notes, and to refinance a portion of the company’s existing bank debt. The New Notes are due in 2030 and will be listed on the Singapore Exchange.
"We are very satisfied with the outcome of the financial liability management process," said ColTel finance manager Zamir Suz Ruiz. "Much of the success was due to the support of our advisory team and the local and international banks. We had great receptivity in the international capital markets, which confirms confidence in our company in the midst of the current uncertainty. As a result of this process, the company has strengthened its capital structure and made a signifigant improvement in its debt indicators."
ColTel, a subsidiary of the Spanish telecom group Telefónica, is a full-service telecommunications provider and the second-largest integrated fixed-line and mobile services provider in Colombia, offering a range of integrated telecommunications services including fixed-line, mobile, data transmission (including broadband access, mobile internet connectivity and value-added services) and television subscription services throughout the country.
The White & Case team working on the liability management transaction was led by partners Bibiana Jaimes, John Vetterli (both in New York) and Carlos Viana (Miami), and included associates Ana Maria Arias (Chicago), Adrian Leal, Jacqueline Durand (both in Miami), Ryan Talbott, Brian Munsie (both in New York), and Antonio Montes de Oca and Mikel Irurita Campero (both in Mexico City). The ColTel team was led by chief financial officer Elena Eloisa Maestre Tinao and finance manager Zamir Suz Ruiz on the commercial and business side, while general counsel Martha Elena Ruiz Diaz-Granados advised on legal matters.
White & Case previously advised ColTel in connection with the offering of the Senior Notes and the Hybrid Notes. The Hybrid Notes were the first international hybrid bond issued by a Colombian corporate issuer.
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