Telecom Argentina SA is tapping international debt markets following its acquisition of Telefónica SA’s local unit, a transaction that has stoked fierce opposition from President Javier Milei’s government.
The company is selling bonds due in 2033, according to people familiar with the matter. Initial pricing guidance suggests that the notes will carry a yield in the mid-nine-percent area, the people added, asking not to be identified because they are not authorized to speak publicly.
The cash proceeds will be used to pay some of the US$1.17 billion in loans the company took out to finance the purchase of the Spanish carrier’s Argentina unit. However, Milei’s team has put the deal under review, prompting regulators to demand Telecom refrain from carrying out any type of legal, corporate or commercial act that implies consolidation with Telefónica for up to six months.
Authorities and competitors have argued that the deal may be a breach of anti-monopoly rules. Milei said in late February that the merger would leave Telecom with about 70 percent of Argentina’s telecommunications industry.
The company hired Deutsche Bank Securities Inc, Banco Bilbao Vizcaya Argentaria SA, Citigroup Inc, JPMorgan Chase & Co and Banco Santander SA to arrange the sale.
by Kevin Simauchi, Bloomberg
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