CHSH Cerha Hempel Spiegelfeld Hlawati has advised Telekom Austria AG on the placement of a hybrid bond with a volume of EUR 600 million on 25 January 2013. It is the first hybrid bond issued in the European telecoms sector. The subordinated bond has an indefinite term and an initial coupon of 5.625%. Subsequently, there will be a reset date every five years. The coupon will then be reset. In addition to this, the coupon will be increased in 2023 and 2038 by a coupon step-up of 0.25% and 0.75% respectively. Coupon payments can be deferred.
Primarily, the hybrid bonds were subscribed by institutional investors in the United Kingdom, Germany, Italy, Switzerland, Austria and France. During the transaction, Citigroup and Stanley Morgan acted as Joint Structuring Advisors and also as Joint Bookrunners together with Bank of America Merrill Lynch and UniCredit Bank Austria.
The team at CHSH was headed by Volker Glas, partner in the Banking and Corporate Finance department, and also consisted of attorneys Christian Aichinger and Gernot Wilfling.