Telefónica to refinance €5 billion debt

Telefónica to refinance €5 billion debt

Spanish operator Telefónica is in talks over refinancing an estimated €5 billion of debt to prepare for potential acquisitions in 2014, Reuters reports.

Citing unnamed sources, a local newspaper said that the heavily indebted European firm is in talks with creditors to lower the cost and extend the maturity of a €3 billion loan.

Telefónica is also likely to use the sale of its Czech subsidiary to pay off a €2 billion debt.

The company has been eyeing the Brazilian market over the last few months – with rumours of a potential offer for Telecom Italia’s TIM Brasil which have since been denied – and sources believe Telefónica is looking at acquisitions in the country.

In July last year, Telefónica announced a European expansion strategy in a bid to reduce its debt.

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