Spanish telecom operator Telefonica has launched price guidance for the biggest European corporate bond sale in nearly two years.

Spanish telecom operator Telefonica has launched price guidance S for the biggest European corporate bond sale in nearly two years.

The company aims to raise about 5.5 billion euro ($6.7 billion), split into two currencies and four tranches, to refinance part of the ??17.7 billion worth of loans from the cash takeover of the UK’s O2 last year. Telefonica plans to sell a total of 4 billion euro of euro-denominated debt in two tranches. The first tranche will have a five-year maturity that would yield between 50 and 55 basis points above mid-swap rates; the second is a 10-year note which could yield over 80 basis points above swaps, according to banking sources. Telefonica has also offered ??1 billion of bonds with maturities of 12 and 20 years.