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KPN announces Eurobond
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Den Haag, 25-7-12
KPN announces its intention to issue a benchmark Eurobond under its Global Medium Term Note programme. The proceeds of this bond will be used for general corporate purposes. The issue supports KPN’s aim of extending its debt maturity profile.
KPN’s net debt amounted to EUR 12.4 billion and the net debt to EBITDA(1) ratio stood at 2.6x at the end of Q2 2012. KPN has a credit rating of Baa2 with a negative outlook by Moody's and BBB with a stable outlook by S&P.
KPN’s financial policy aims to offer the company the flexibility to invest in and grow its business, in a way that maximises returns to shareholders while protecting the interest of bondholders. KPN continues to target a net debt to EBITDA(1) ratio between 2.0 to 2.5x and remains committed to minimum credit ratings of Baa2 and BBB by Moody's and Standard & Poor’s respectively.
Bank of America Merrill Lynch, Rabobank and UniCredit have been appointed to act as joint book runners for this transaction(2) .
1. Based on 12 months rolling total EBITDA excluding book gains/losses, release of pension
provisions and restructuring costs, when over EUR 20 million
2. Stabilisation: FSA/ICMA
