Telefonica's Latin America Fire-Sale Sends Chile Unit to New Low
Bonds of Telefonica Moviles Chile SA slumped into distressed territory last week on a report that its parent company was about to throw in the towel, selling the asset after years of fierce competition in the local mobile phone market.
The company's dollar bonds due 2031 plummeted 13.2 cents on the dollar to 51 cents, after the Spanish media outlet El Confidencial reported last Monday that Telefonica SA had hired Citigroup Inc. to look for a buyer for the unit. The bonds now yield 1,170 basis points over similar maturity US Treasuries. Both Spain's Telefonica and its Chilean unit declined to comment on the report.
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