Cellnex Shares Rise on Plan to Issue Convertible Bonds

By Adria Calatayud

Shares in Cellnex Telecom rose Friday after the Spanish telecommunications-infrastructure company said it plans to issue up to 1 billion euros ($1.10 billion) worth of bonds that will be convertible into shares at a premium.

At 0722 GMT, shares in Cellnex were up 4.7% at EUR38.49.

The company said the new bonds will be mature in August 2030 and can be convertible into newly issued shares or existing ones at the option of bondholders. The new shares would be issued at a premium of between 62.5% and 67.5% relative to the volume-weighted average price between opening and close of trading Friday, Cellnex said.

Concurrently with the convertible bond issue, Cellnex said it plans to repurchase bonds due in 2026 worth EUR800 million in aggregate, including EUR600 million bonds that were issued in 2018 and a further EUR200 million issued in 2019.

"Cellnex is taking advantage of the favourable market conditions to increase its average debt maturity by issuing a new long-term convertible bond," the company said.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

July 28, 2023 03:43 ET (07:43 GMT)

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