Telstra prices $960m in senior notes

Telstra (ASX:TLS) has priced a $US1b bond issue in one of a number of recent initiatives to refinance its existing debt

Telstra (ASX:TLS) has priced a $US1 billion bond issue to refinance its existing debt.

The 10-year bonds are priced with a coupon of 4.80 per cent, with interest to start accruing from next week. Thereafter, interest will be payable on every six months starting on 12 October.

The proceeds from the issue will be used for general corporate purposes and to refinance debt, Telstra said.

According to the company's 1H report, Telstra has a $2.5 billion Euro bond due June 2011, but during the half refinancing arrangements were made to cover a chunk of it.

These include a $708 million Euro bond maturing in March 2021, and a $60 million Yen bond and a $201 million domestic bond both maturing in late-2020.

Telstra's total net debt was $14.39 billion as of 31 December, 2010.

TLS shares fell 0.35 per cent during Friday's trading to $2.830.

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