Telecom Argentina has successfully priced a US$600 million senior unsecured notes issuance due January 2036. The notes priced at 99.201 with an 8.500% coupon, yielding 8.625%. Pricing came at the tight end of guidance of 8.75% plus or minus 12.5 bps and significantly through initial price talk in the low 9% area, underscoring strong investor demand. Proceeds will be used for the repayment or refinancing of existing indebtedness, with any remaining amount allocated to general corporate purposes. The notes are governed by New York law and listed in Luxembourg as well as locally on BYMA and A3 Mercados. The final size of US$600 million represents an upsizing from the initial US$500 million target, within the expandable range of up to US$1 billion. This outcome confirms solid investor appetite, allowing the issuer to increase deal size while simultaneously achieving meaningful price tightening. The issuance is rated B2 by Moody’s and is expected to be rated B- by S&P and B by Fitch.
New Issue Terms:
Issuer: Telecom Argentina S.A.
Size: US$600 million
Maturity: January 20, 2036 (10 Years)
Amortization: Two equal annual installments of 50% each on Jan 20, 2035, and Maturity (Jan 20, 2036). WAL: 9.5 Years.
Yield: 8.625% (Tightened from IPT Low 9% Area)
Call Structure: Make-whole call prior to Jan 2031; HY call schedule thereafter:
From Jan 20, 2031: Par + 50% of coupon
From Jan 20, 2032: Par + 25% of coupon
From Jan 20, 2033: Par + 12.5% of coupon
From Jan 20, 2034 and thereafter: Par
Use of Proceeds: Repay/Refinance existing indebtedness; remainder for general corporate purposes.