Orange announced Thursday that it intends to issue a new hybrid bond, a transaction that will be accompanied by the launch of an offer to repurchase some of its existing hybrid bonds.

The telecom operator said in a statement that its new issue of perpetual super-subordinated bonds denominated in euros will include an initial early redemption option from June 2032, with a reset fixed interest rate.

The group plans to announce the pricing of the new bonds, which are expected to be admitted to trading on Euronext Paris, later today.

The rating agencies are expected to assign them ratings of 'BBB-' from S&P, 'Baa3' from Moody's and 'BBB-' from Fitch, considering them as 50% equity.

At the same time, Orange plans to launch a contractual offer to repurchase its €1.25bn super-subordinated bonds with no maturity date and no redemption before 12 years, with an initial interest rate reset date of 1 October 2026.

The offer will also cover its €500m of perpetual non-callable super-subordinated bonds with a first interest rate reset date of 19 March 2027, bearing interest at a fixed rate subject to adjustment.

The group explains that the objective of the offer and the launch of its new bonds is, among other things, to "proactively" manage its portfolio of hybrid instruments.


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