Telstra Prices EUR1 Billion 3.5% 2022 Bond At 99.617

Australian telecom company Telstra Corp. (TLS.AU) has priced its EUR1 billion, 10.5-year bond at 115 basis points over midswaps, one of the banks running the deal said Wednesday.

This is tighter than initial price guidance, which was between 120 to 125 basis points over midswaps.

Deutsche Bank AG, HSBC Holdings PLC and JPMorgan Chase and Co. were the lead managers on the deal.

The terms of the transaction are as follows:

 
Amount:           EUR1 billion 
Maturity:         Sept. 21, 2022 
Coupon:           3.5% 
Reoffer Price:    99.617 
Payment Date:     March 14, 2012 
Spread:           115 basis points over midswaps 
Debt Ratings:     A2  (Moody's) 
                  A   (Standard & Poor's) 
                  A   (Fitch) 
Denominations:    EUR1,000 
Listing:          London 
Interest:         Annual 
 

-By Sarka Halas, Dow Jones Newswires; [phone]; [e-mail]