Clifford Chance

Clifford Chance advises on liability management transaction by ColTel

New York: Leading international law firm Clifford Chance has represented (i) BNP Paribas, BofA, J.P. Morgan and Santander as lenders on a US$320 million senior unsecured term financing (the Facility) to Colombia Telecomunicaciones S.A. E.S.P. (ColTel) and (ii) BBVA, BNP Paribas, BofA, J.P. Morgan and Santander as initial purchasers on the issuance by ColTel of US$500 million aggregate principal amount of 4.950% senior notes due 2030 (the Notes).

ColTel is a subsidiary of leading global telecommunications services provider Telefónica S.A. and one of the leading telecommunications companies in Colombia.

The Notes were offered and sold in a private placement pursuant Rule 144A and Regulation S under the Securities Act and listed on the Singapore Exchange Securities Trading Limited.

ColTel used the proceeds from the Facility and a portion of the proceeds from the Notes to redeem its US$750 million 5.375% senior notes due 2022. The remainder of the proceeds from the Notes were used to repay other indebtedness and for general corporate purposes.

The liability management transaction was led by Capital Markets partner Hugo Triaca and Banking & Finance partner Guido Liniado and included associates Lane Feler, Andrés Berry and Nicolas Ocampo, foreign associate Alvaro Rojas Cuenca and summer law clerk Brianna Jones Rich. Partner Avrohom Gelber and associate Sean Smestad advised on tax matters.

Last year, Clifford Chance advised on another important capital markets transaction by a subsidiary of Telefónica S.A. in Latin America, Telefónica del Perú S.A.A.'s soles-denominated issuance of 7.375% senior notes due 2027.