The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Now you has Jazztel

Issuer: Jazztel

Amount: €110 million and $100 million

Type of issue: high-yield bond
Date: April 8

Bookrunners: Credit Suisse First Boston, Merrill Lynch

In 1997 and early 1998, before it was virtually extinguished by last autumn's flight from credit, Europe's fledgling high-yield market found the bulk of its deals in telecoms. Now that the market is spluttering back into life, it is no surprise that telecoms deals are again leading the way. The deal that opened the market, for example, was for Dutch communications company Hermes Railtel in December. But the recent deal for the Spanish telecoms operator Jazztel is a little unusual.

Most obviously that's because it is Spain's first high-yield deal. But more importantly, it provides an example of an early-stage borrower raising money successfully by issuing bonds to European investors. Jazztel was formed in October 1997 and only begins offering a service to Spanish telephone customers this year.

The bond issue, which closed on April 8, had two tranches, one for €110 million and one for $100 million. Both were for 10 years, with a 14% coupon, and included warrants for equity. The two bonds combined could convert into a total of 10% of Jazztel's equity.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree