Colombia Telecomunicaciones S.A. E.S.P.’s Unsecured Term Financing And Notes Offering

Clifford Chance represented the lenders and initial purchasers involved in the transaction, while White & Case LLP advised Colombia Telecomunicaciones.

BBVA, BNP Paribas, BofA, J.P. Morgan and Santander acted as (i) lenders on a $320 million senior unsecured term financing (the Facility) to Colombia Telecomunicaciones S.A. E.S.P. (ColTel) and (ii) 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 (Picture) 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.

White & Case LLP advised Colombia Telecomunicaciones with a team led by partners Bibiana Jaimes, John Vetterli (both in New York) and Carlos Viana (Miami), and included associates Ana Maria Arias (Chicago), Adrian Leal, Jacqueline Durand (both in Miami), Ryan Talbott, Brian Munsie (both in New York), and Antonio Montes de Oca and Mikel Irurita Campero (both in Mexico City). The ColTel team was led by chief financial officer Elena Eloisa Maestre Tinao and finance manager Zamir Suz Ruiz on the commercial and business side, while general counsel Martha Elena Ruiz Diaz-Granados advised on legal matters.

Involved fees earner: Andrés Berry – Clifford Chance; Lane Feler – Clifford Chance; Avrohom Gelber – Clifford Chance; Guido Liniado – Clifford Chance; Nicolas Ocampo – Clifford Chance; Sean Smestad – Clifford Chance; Hugo Triaca – Clifford Chance; Ana Maria Arias – White & Case; Jacqueline Stephanie Durand – White & Case; Bibiana Jaimes – White & Case; Adrián Leal – White & Case; Antonio Montes de Oca – White & Case; Brian Munsie – White & Case; Ryan Talbott – White & Case; John Vetterli – White & Case; Carlos Viana – White & Case;

Law Firms: Clifford Chance; White & Case;

Clients: Bank of America; BBVA Securities Inc.; BNP Paribas; Colombia Telecomunicaciones ; JP Morgan; Santander;

Author: Ambrogio Visconti