Cellnex Telecom, a Spanish telecommunications-infrastructure company, has announced its plan to issue up to 1 billion euros ($1.10 billion) worth of bonds that will be convertible into shares at a premium. This news has caused a surge in shares for Cellnex, with an increase of 4.7% at EUR38.49 as of 0722 GMT.
Convertible Bonds with Maturation in August 2030
The newly proposed bonds by Cellnex will mature in August 2030 and offer bondholders the option to convert them into either newly issued shares or existing ones. The conversion will be at a premium ranging between 62.5% and 67.5% relative to the volume-weighted average price between the opening and closing of trading on Friday.
In conjunction with the issuance of these convertible bonds, Cellnex also plans to repurchase bonds due in 2026 amounting to EUR800 million, including EUR600 million bonds issued in 2018 and an additional EUR200 million issued in 2019.
Seeking Favorable Market Conditions
Cellnex explained that it aims to take advantage of the current favorable market conditions to enhance its debt profile by issuing this new long-term convertible bond. This strategy will contribute to increasing the company’s average debt maturity.
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