TeliaSonera cancels new €500m 15-year bond: forced to raise interest on previous issues

TeliaSonera, the dominant Nordic telecommunications provider, issued a disappointing quarterly earnings report on Tuesday, and on Thursday it was forced to cancel a planned €500m 15-year bond and to pay a much higher interest rate on shorter-term bonds in its first international bond issue since a 2003 merger.

The company released a first quarter earnings report on Tuesday that fell short of expectations and came with a warning it expected its rivals to mount serious competition in the upcoming quarters. Then on Thursday it had to cancel a 15-year bond as well as to widen the yield spread on a €750m 10-year bond to 78 basis points, from an initial price guidance of 65 basis points.

It was also forced to pay a spread of 48 basis points, up from 43 basis points, on a €500 seven-year bond. The total amount of capital raised from the bond issue was disappointing, as the original goal of €1.5 bn was cut to €1.25 bn.

Story link: TeliaSonera cancels new €500m 15-year bond: forced to raise interest on previous issues