As part of its recently announced financial restructuring, France Telecom set the final terms of its EUR denominated benchmark issue. Announced as a 3 billion EUR deal in two tranches last Friday, the transaction was increased to 5.5 billion EUR with an additional 30-year tranche, to meet investor demand. The proceeds will be used to refinance existing debt.
http://www.francetelecom.com
- On 05-December-2002, France Telecom announced a financial restructuring that includes €15 billion in new equity, including € 9 billion from the French government, which holds a 55% interest in the company. Under the “15+15+15�? plan, France Telecom would also make operational improvements to increase free cash flow by €15 billion to reduce debt, and the company would reschedule €15 billion of debt. The company said it would focus on integrated management of key assets such as its France Telecom, Equant, Orange and Wanadoo brands, while divesting from operations with weaker or less strategic positions. The company will move away from its decentralized organization to develop greater synergies between units, including centralized purchasing, R&D, support, marketing and administrative functions.