Eircom priced a larger than expected €1.05 billion bond issue yesterday and said it would use the €50 million cash raised to pay off some of its bank debt.
The bonds were issued in three parts by the firm, which is the first former state telecoms firm in Europe to issue notes on the high yield market.
The firm sold €550 million of 10-year senior notes issued via its parent, Valentia. The notes were priced at par to yield at 7.25 per cent.
Eircom also sold senior subordinated notes denominated in euros and dollars via Eircom Funding. It priced €285 million and $250 million of senior subordinated 10-year notes to yield at 8.25 per cent.