Telstra prices $960m in senior notes

Telstra prices $960m in senior notes

Telstra (ASX:TLS) has priced a US$1 billion ($957 million) bond issue to refinance its existing debt.

The 10-year bonds are priced with a coupon of 4.80%, with interest to start accruing from next week. Thereafter, interest will be payable on every six months starting on October 12.

The proceeds from the issue will be used for general corporate purposes and to refinance debt, Telstra said.

According to the company's 1H report, Telstra has a $2.5 billion Euro bond due June 2011, but during the half refinancing arrangements were made to cover a chunk of it.

These include a $708 million Euro bond maturing in March 2021, and a $60 million Yen bond and a $201 million domestic bond both maturing in late-2020.

Telstra's total net debt was $14.39 billion as of December 31 2010.

TLS shares fell 0.35% during Friday's trading to $2.830.

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Tags TelstraTelecommunicationsdebtASX:TLSConvertible notes

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